Q9 Use the accounting equation analyze the following transac

[Q9] Use the accounting equation, analyze the following transactions and identify the effect of each on assets, liabilities, and equity, as applicable. Use a (+) to denote an increase and a (-) to denote a decrease, if anv, use NA when no effect on any of the elements Assets Liabilities+ Equi 2 4 6 9 10 12 13 15 1. Issued share capital for cash 2. Purchased a truck for cash 3. Received a bank loan to pay for equipment 4. Made a deposit for electricity service to be provided in the future 5. Paid rent for the month just ended 6. Signed a new union contract that provides for increased wages in the future 7. Hired a messenger service to deliver letters during a mail strike 8. Received a parcel; paid the delivery service 9. Billed customers for services performed 10. Made a cash payment to satisfy an outstanding obligatioin 11. Received a pavment of cash in satisfaction of an amount owed by a customer 12. Collected cash from a customer for services rendered 13. Paid cash for truck operating expenses (gas, oil 14. Issued shares in the company to pay off a loan 15. paid a dividend in cash.

Solution

Effect of transaction :

(-)

(+)

(+)

(-)

	Assets	=	Liabilities	+	Shareholder\'s equity
1.	(+)				(+)
2.	(-) (+)
3.	(+)		(+)
4.	(+)		(+)
5.	(-)				(-)
6.	NA		NA		NA
7.	NA		NA		NA
8.	(-)				(-)
9.	(+)				(+)
10.	(-)		(-)
11.	(+) (-)
12.	(+)				(+)
13.	(-)				(-)
14.			(-)		(+)
15.	(-)				(-)