Indicate whether the account balances will increase or decrease and by how much, based on each transaction. The first

Question

Indicate whether the account balances will increase or decrease and by how much, based on each transaction. The first transaction has been completed. Ensure that the accounting equation is balanced. Transaction Assets Liabilities Owner's Equity Paid $200 cash for maintenance expenses. -200 -200 1) The owner invested $7,620 in cash into the business. 2) Paid $4,990 cash for one year of Insurance. 3) Received a telephone bill for $200 which will be paid later. 4) Purchased equipment worth $990 on account. 5) Provided services and collected $3,900 in cash. 6) Paid $900 towards the bank loan. 7) Paid $55 interest related to the bank loan. 8) Paid $600 of accounts payable.

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Transaction Assets Liabilities Owner's Equity Paid $200 cash for maintenance expenses. -200 -200 1) The owner invested $7,620 in cash into the business. 7,620 7,620 2) Paid $4,990 cash for one year of Insurance. 4,990 -4,990 3) Received a telephone bill for $200 which will be paid later. 200 -200 4) Purchased equipment worth $990 on account. 990 990 5) Provided services and collected $3,900 in cash. 3,900 3,900 6) Paid $900 towards the bank loan. -900 -900 7) Paid $55 interest related to the bank loan. -55 -55 8) Paid $600 of accounts payable. -600 -600 Net Amounts 10,755 -310 11,065 Net changes on Assets 10,755 = Net changes on Liabilities and Owner's Equity (-310 + 11,065) 10,755

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Indicate whether the account balances will increase or decrease and by how much, based on each transaction

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Archived Solution

Transaction	Assets	Owner's Equity
Paid $200 cash for maintenance expenses.	-200	-200
1) The owner invested $7,620 in cash into the business.
2) Paid $4,990 cash for one year of Insurance.
3) Received a telephone bill for $200 which will be paid later.
4) Purchased equipment worth $990 on account.
5) Provided services and collected $3,900 in cash.
6) Paid $900 towards the bank loan.
7) Paid $55 interest related to the bank loan.
8) Paid $600 of accounts payable.