The transactions below relate to XYZ Delivery Company. Indicate the effect of each transaction on the accounting equation (i.e., assets, liabilities, and equity). Enter the number corresponding to your answer in the box provided.
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A. used supplies costing $800 in the performance of services.
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B. XYZ purchased $40,000 worth of store equipment from Libby Company by paying $8,000 cash and agreeing to pay the remainder within six months.
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C. The firm performed $3,000 of delivery services for a customer who agreed to pay XYZ Company next month.
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D.XYZ Company purchased office supplies for $1,900 cash.
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E. XYZ purchased $7,000 of newspaper advertising and agreed to pay the newspaper in thirty days.
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F. XYZ received $5,000 cash for services to be performed for a customer next month.
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| 1. |
assets increase; liabilities no effect; equity increase
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| 2. |
assets no effect; liabilities no effect; equity no effect
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| 3. |
assets decrease; liabilities decrease; equity no effect
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| 4. |
assets decrease; liabilities decrease; equity decrease
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| 5. |
assets no effect; liabilities increase; equity decrease
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| 6. |
assets no effect; liabilities decrease; equity increase
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| 7. |
assets increase; liabilities increase; equity increase
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| 8. |
assets decrease; liabilities no effect; equity decrease
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| 9. |
assets increase; liabilities increase; equity no effect
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