The following are some examples of typical business transactions:

1. Purchased office equipment on credit.

2. The owner contributed capital.

3. Purchased office furniture for cash.

4. Received amounts owing by receivables.

5. Payments to payables.

6. The business returns office equipment previously purchased on credit.

You are required to:

Write down the accounting equation. Write down the number of each transaction on separate lines below the equation.

For each transaction, show how the transaction would affect the elements of the accounting equation, using (+) to show an increase, (–) to show a decrease and (0) to denote no effect.