Exercise 2-2 Analyze the impact of transactions on the accounting equation (LO2)
1. | Issue common stock in exchange for cash. |
2. | Purchase equipment by signing a note payable. |
3. | Provide services to customers on account. |
4. | Pay rent for the current month. |
5. | Pay insurance for the current month. |
6. | Collect cash from customers on account. |
Required: |
Analyze each transaction. Under each category in the accounting equation, select whether the transaction increases, decreases, or has no effect. The first item is provided as an example.
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