Accounting equation: assets and liabilities

For each of the following items, give an example of a business transaction that has the described effect on the accounting equation:

Increase an asset and increase a liability.
Increase one asset and decrease another asset.
Decrease an asset and decrease owner’s equity.
Decrease an asset and decrease a liability.
Increase an asset and increase owner’s equity.

Don't use plagiarized sources. Get Your Custom Essay on
Accounting equation: assets and liabilities
From $8/Page
Order Essay

Hints & Tricks:
Invest in a company $10,000 What would the journal entry be?
DR Cash 10,000 (increase assets) CR Capital 10,000 (increase owners equity)
What would be the journal entries when a company pays rent expense $400?
DR Rent Exp 400 (Decrease Owners Equity) CR Cash 400 (Decrease owners equity)
Earned $2,000 in revenue did not receive cash. What would be the journal entries?
DR A/R 2,000 (increase assets) CR REVENUE 2,000 (increase owners equity)
The company purchases supplies paying cash $200
What would the journal entries be?
DR Supplies 200 (Increase Assets) CR Cash 200 (Decrease Assets)
Paid $300 in wages expense
What are the journal entries
DR Wages Exp 300 (Decrease Owners Equity) CR Cash 300 (Decrease Asset)
Purchased equipment on account for $12,000
What are the journal entries?
DR Equipment 12,000 (increase asset) CR A/P 12,000 (increase liability)
The company pays the A/P off. What are the journal entries?- DR A/P 12,000 (decrease liabilities) CR Cash 12,000 (decrease asset)
The owner withdrew $1,000 in cash.
What are the journal entries?
DR Drawing 1,000 (decrease owners equity) CR Cash 1,000 (decrease assets)
The owners equity account is made up of 4 types of accounts
Revenue and Capital increase the Owners Equity account and Expenses and Drawing decrease the Owners Equity account
Receive $500 in cash for revenues earned
DR Cash 500 CR Revenue 500
Invested $10,000 in cash
DR Cash 10,000 CR Capital 10,000
Paid expenses $200
DR Expense 200 CR Cash 200
Withdrew $900 in cash
DR Drawing 900 CR Cash 900

Solution Preview
For each of the following items, give an example of a business transaction that has the described effect on the accounting equation:

Increase an asset and increase a liability.
Increase one asset and decrease another asset.
Decrease an asset and decrease owner’s equity.
Decrease an asset and decrease a liability.
Increase an asset and increase owner’s equity.

1) Increase an asset and increase a liability.

Increase asset by increasing inventory.
Buying supplies (worth $100) would increase inventory (an asset).
If you buy these supplies on credit you increase a liability (accounts payables)
Journal entries:
Dr Inventory 100 Cr Accounts Payable 100

Another example from the hints and tips

Purchased equipment on …

Solution Summary
The solution gives an example of a business transaction that has the described effect on the accounting equation:
Increase an asset and increase a liability.
Increase one asset and decrease another asset.
Decrease an asset and decrease owner’s equity.
Decrease an asset and decrease a liability.
Increase an asset and increase owner’s equity.

To continue with the answer check on topwriters4me.com/

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 20% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Top Writers 4Me
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 10k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Nursing
Good job! Thank you.
Customer 452487, October 26th, 2021
Nursing
Excellent!!! Thank you.
Customer 452487, September 13th, 2021
Communications
You're awesome! Thank you so much!
Customer 452483, July 27th, 2021
Nursing
Excellent! Thank you.
Customer 452487, October 16th, 2021
Psychology
Very clear, and complete information presented. I, thank you for all of your hard work, appreciate it!
Customer 452483, August 9th, 2021
Healthcare Writing & Communications
Thank you so much for all of your hard work! Appreciate it all!
Customer 452483, November 14th, 2021
Healthcare Writing & Communications
Excellent!! You’re awesome, thank you very much for all of your hard work & help!!
Customer 452483, October 24th, 2021
Mathematics
Thank you so much!
Customer 452483, July 26th, 2021
Classic English Literature
Great paper, thank you!
Customer 452591, May 5th, 2022
Nursing
Excellent. Thank you.
Customer 452487, August 26th, 2021
Psychology
Thank you so much for all of your hard work, appreciate every bit of it!
Customer 452483, September 6th, 2021
Mathematics
PERFECT! Thanks a million, you're all awesome!!!!
Customer 452483, July 7th, 2021
1159
Customer reviews in total
96%
Current satisfaction rate
2 pages
Average paper length
47%
Customers referred by a friend
OUR GIFT TO YOU
20% OFF your first order
Use a coupon 24/7HELP and enjoy expert help with any task at the most affordable price.
Claim my 20% OFF Order in Chat
Open chat
Chat with us Live Here
Get in Touch with Our Live Chat Agents via WhatsApp on +1(346) 416-0954. Get Unlimited Access to Answers on Any Queries With Your Paper.