Presented below are a number of transactions. 

(a) Indicate whether each transaction increased (+), decreased (–), or had no effect (NE) on assets, liabilities, and shareholders’ equity. 

(b) Which of the following are accounting transactions that should be recorded in the accounting records?

(1)Purchased equipment for cash. Completed the paperwork to hire a new employee; 

(2) the employee will start work next week. Fired the CEO. 

(3)Performed services on account. 

(4)A potential customer called to inquire about the availability of a product with limited availability and you are sure they will call back to place an order within the week. Analyze effects of transactions. 

Answer rating: 100% (QA)

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