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In the columns below, indicate whether each transaction caused and increase (+), a decrease (-),
or no change (NC) in assets, liabilities, and owner’s equity.
Transaction
Assets
Liabilities
Owner’s equity
a. Withdrawal of cash by owner
__________
__________
__________
b. Purchase of an asset for cash
__________
__________
__________
c. Purchase of an asset on account
__________
__________
__________
d. Received, but did not pay, water bill
__________
__________
__________
e. Paid wages not previously recorded
__________
__________
__________
f. Invested equipment in the business
__________
__________
__________
Transaction
Assets
Liabilities
Owner’s equity
a. Withdrawal of cash by owner
__________
__________
__________
b. Purchase of an asset for cash
__________
__________
__________
c. Purchase of an asset on account
__________
__________
__________
d. Received, but did not pay, water bill
__________
__________
__________
e. Paid wages not previously recorded
__________
__________
__________
f. Invested equipment in the business
__________
__________
__________
Solution
Answer:TransactionAssetsLiabilitiesOwner’s equitya. Withdrawal of cash by owner(-)NC(-)b.
Purchase of an asset for cash(+)(-)NCNCc. Purchase of an asset on account(+)(+)NCd. Received,
but did not pay, water billNC(+)(-)e. Paid wages not previously recorded(-)NC(-)f. Invested
equipment in the business(+)NC(+)

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In the columns below, indicate whether each transaction caused and i.pdf

  • 1. In the columns below, indicate whether each transaction caused and increase (+), a decrease (-), or no change (NC) in assets, liabilities, and owner’s equity. Transaction Assets Liabilities Owner’s equity a. Withdrawal of cash by owner __________ __________ __________ b. Purchase of an asset for cash __________ __________ __________ c. Purchase of an asset on account __________ __________ __________ d. Received, but did not pay, water bill __________ __________ __________ e. Paid wages not previously recorded __________ __________ __________ f. Invested equipment in the business __________ __________ __________ Transaction Assets Liabilities Owner’s equity a. Withdrawal of cash by owner
  • 2. __________ __________ __________ b. Purchase of an asset for cash __________ __________ __________ c. Purchase of an asset on account __________ __________ __________ d. Received, but did not pay, water bill __________ __________ __________ e. Paid wages not previously recorded __________ __________ __________ f. Invested equipment in the business __________ __________ __________ Solution Answer:TransactionAssetsLiabilitiesOwner’s equitya. Withdrawal of cash by owner(-)NC(-)b. Purchase of an asset for cash(+)(-)NCNCc. Purchase of an asset on account(+)(+)NCd. Received, but did not pay, water billNC(+)(-)e. Paid wages not previously recorded(-)NC(-)f. Invested equipment in the business(+)NC(+)