For each of the transactions identified, analyse how the asset, liability and/or equity accounts increase, decrease or remain unchanged.

For each of the transactions identified, analyse how the asset, liability and/or equity accounts increase, decrease or remain unchanged. (Hint: Remember the accounting equation.) You need to show the $amounts as well as indicate increase or decrease for each transaction.

		Assets (A)	Liabilities (L)	Equity (E)
a.	Obtained a loan to purchase a Trailer for $25,000.
b.	The owner took $15,000 of supplies for personal use.
c.	An accounts receivable, who owes $7,000, made a part payment of $4,000.
d.	Purchased stock for $18,000, paying $12,000 cash and the balance on credit.
e.	Paid $6,000 in respect of accounts payable in cash.
f.	Sold $10,000 of goods on credit.

Expert Solution

The increase/decrease in assets, liabilities and equity accounts will be as follows:

The increase in assets, liabilities or equity is shown as the positive figure and decrease in assets, liabilities or equity is shown as the negative/brackets figure in the given below table.

ekkarill92 answered 1 year ago

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