Selected transactions for Erin’s Events, a conference-planning business, are listed below.
1. Made a cash investment in the business.
2. Purchased a one-year insurance policy.
3. Purchased computer equipment using cash with the remainder on account.
4. Purchased supplies on account.

Instructions
Describe the effect of each transaction on assets, liabilities, and owner’s equity. For example, the first answer is (1) Increase in assets and increase in owner’s equity.