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Analyze the transactions of a business organized as a proprietorship described below and indicate whether the transaction increased, decreased or increased and decreased the accounting equation.

Answer :

An accounting transaction is a business activity or event that causes a measurable change in the accounting equation is described below.

Explanation:

  • Owner's Equity Assets Liabilities Decreased Increased
  • Received cash for services rendered Increase Decreased -
  • Purchased office equipment on credit Increased Decreased
  • Paid employees salaries. Decreased increased Received cash from customer in payment on account Decreased d
  • Paid telephone bill for the month. Decreased
  • Paid for office equipment purchased in transaction  Decreased
  • Purchased office supplies on credit. Increased and decreased Decreased Increased
  • Owner withdrew cash for personal expenses Decreased Increased
  • Obtained a loan from the bank Increased
  • Purchased office equipment on credit ed increased Decreased
  • Paid employees salaries Received cash from customer in payment on account.
  • Paid for office equipment purchased in transaction 2 Decreases
  • Purchased office supplies on credit. Decreased
  • Owner withdrew cash for personal expenses. creased increased
  • Obtained a loan from the bank Increased
  • Billed customers for services rendered. Increased Increased

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