a$.$

GibsonGibson

contributed

$ $10$ comma $000$$$10,000$

to the business in exchange for capital.

b$.$

Purchased equipment for

$ $5$ comma $000$$$5,000$

on account.

c$.$

Paid

$ $400$$$400$

for office supplies.

d$.$

Earned and received

$ $2$ comma $500$$$2,500$

cash for service revenue.

e$.$

Paid

$ $400$$$400$

for wages to employees.

f$.$

GibsonGibson

withdrew

$ $1$ comma $000$$$1,000$

cash.

g$.$

Earned

$ $1$ comma $000$$$1,000$

for services provided. Customer has not yet paid.

h$.$

Paid

$ $1$ comma $000$$$1,000$

for rent.

i$.$

Received a bill for

$ $250$$$250$

for the monthly utilities. The bill has not yet been paid. ElaineElaine$\text{'}$s

Inflatables earns service revenue by providing party planning services and inflatable playscapes.

ElaineElaine$\text{'}$s

Inflatables is owned and operated by

ElaineElaine

GibsonGibson.

During the past$$ month,

ElaineElaine$\text{'}$s

Inflatables has the following$$ transactions:

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$($Click

the icon to view the$$ transactions.$)$

Indicate the effects of the business transactions on the accounting equation for

ElaineElaine$\text{'}$s

Inflatables. Transaction$($a$)$ is answered as a guide.

Question content area bottom

Part $1$

a$.$

GibsonGibson

contributed

$ $10$ comma $000$$$10,000$

to the business in exchange for capital.

a$.$

Increase asset

$($Cash$)$

;

Increase equity

$($Gibson$,$ Capital$)$

Part $2$

b$.$ Purchased equipment for

$ $5$ comma $000$$$5,000$

on account.