Accounting Equation

Determining Accounting Equation Effects of various Transactions

The following transactions occurred during a recent year :
a. Paid wages of $1,000 for the current period ( example below)
b. Borrowed $5,000 cash from a local bank
c.Purchased $2,000 of equipment on credit
d. Earned $400 of sales revenue, collected cash
e. Received $800 of utilities services on credit
f. Earned $700 of service revenue, on credit
g. Paid $300 cash on account to a supplier.
h. incurred $70 of delivery expenses, paid cash
i. Earned $400 of service revenue, collected half in cash, balance on credit
j. Collected $100 cash from customers on account
k. Incurred $300 of advertising costs, paid half in cash, balance on credit

Required: For each transaction, complete the table below, indicating the account amount and direction of the effect ( + for increase and – for decrease) of each transaction under the accrual basis. Write NE if there is no effect. Include revenues and expenses as subcategories of Stockholders’ equity