For each transaction In Column D, numbered 1 through 12 below, identify its effect for the current year on the accounting equation by selecting from a through h below. You may use each letter more than once or not at all.

ANSWER HERE

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Transaction

Accounting Equation Effects

g

1

Purchased computer equipment for cash

a. + A and + L

2

Received cash in exchange for the issuance of a note payable

b. + A and + SE (Contributed Capital)

3

Purchased building and land in exchange for a mortgage note payable

c. + A and + SE (Retained Earnings)

4

Received cash in exchange for the issuance of common stock

d. - A and - L

5

Purchased computer supplies on account

e. - A and - SE (Contributed Capital)

6

Provided computer services to customers for cash

f. - A and - SE (Retained Earnings)

7

Paid an account payable

g. + A and - A

8

Provided computer services to customers on account

h. Not communicated by the formal accounting system

9

Used computer supplies in the regular operations of the business (acquired during a previous accounting period)

10

Recorded depreciation for the company’s computer

11

Secured a large contract with Allegheny Company to provide computer services during the forthcoming year

12

Declared and paid dividends to the owners of common stock