For each transaction a through $f,$ identify its impact on the accounting equation $($select from $l$ through $5$ below$).$

Decreases an asset and decreases equity.

Increases an asset and decreases an asset.

Exercise $1-14$

$2.$ Increases an asset and increases a liability.

Identifying effects

$3.$ Decreases an asset and decreases a liability.

$5.$ Increases an asset and increases equity.

transactions on this

accounting equat

a$.$ The company pays cash toward an account

P$1$ payable.

d$.$ The company pays workers for wages earned.

b$.$ The company purchases equipment on credit.

e$.$ The company purchases supplies for cash.

c$.$ The owner invests cash in the business

f$.$ The company provides services for cash.