List the effect of each of the following transactions upon any or all of the four financial statements of a business. Apart from indicating the financial statement(s) involved, use appropriate phrases such as ‘increase total assets’, ‘decrease equity’, ‘increase income’, ‘decrease cash flow’ to describe the transaction concerned.

1.    Purchase equipment for cash

2.    Provide services to a client, with payment to be received within 40 days

3.    Pay a liability

4.    Invest additional cash into the business by the owner

5.    Collect an account receivable in cash

6.    Pay wages to employees

7.    Receive the electricity bill in the mail, to be paid within 30 days

8.    Sell a piece of equipment for cash

9.    Withdraw cash by the owner for private usage.

10.    Borrow money on a long-term basis from a bank