For each of the accounting events that follow (AF), indicate in the space provided the appropriate number
Question:
1. Increases assets, increases owners' equity.
2. Increases assets, increases liabilities.
3. Increases assets, decreases assets.
4. Decreases assets, decreases liabilities.
5. Decreases assets, decreases owners' equity.
———A. Paid an obligation of $1,300.
———B. Paid rent of $4,200 in advance for the year.
———C. Purchased office supplies costing $1,500 on account.
———D. Obtained a loan of $5 000 from First Bank.
———E. Provided services to a customer on account.
———F. Collected $500 cash from a customer who had previously been billed.
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Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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