The following transactions are taken from the records of Phantom Security Company:

a Rex Simpson, the owner, invested \(\$ 12000\) cash in the business.
b Phantom paid \(\$ 6000\) cash to acquire security equipment.
c Phantom received a \(\$ 7000\) cash loan from Story Regional Bank.
Required:
Determine the overall effect of each transaction on the assets, liabilities and owner's equity of Phantom Security Company. Use the symbols I for increase, D for decrease and \(N\) for no change. Also show the related dollar amounts.

Transcribed Image Text:

Assets = Liabilities + Owner's Equity