WEEK 1-A SEMINAR QUESTIONS 1. The basic accounting equation is Assets = Liabilities + __________. For each of the transactions in items 2 through 11, indicate the two (or more) effects on the accounting equation of the business or company. 2. The owner invests personal cash in the business. Assets Increase Decrease No Effect Liabilities Increase Decrease No Effect Capital Increase Decrease No Effect 3.. The company receives cash from a bank loan. Assets Increase Decrease No Effect Liabilities Increase Decrease No Effect Capital Increase Decrease No Effect 4. The company repays the bank that had lent money to the company. Assets Increase Decrease No Effect Liabilities Increase Decrease No Effect Capital Increase Decrease No Effect 5. The company purchases equipment with its cash. Assets Increase Decrease No Effect Liabilities Increase Decrease No Effect Capital Increase Decrease No Effect 6. The company purchases supplies on credit. Assets Increase Decrease No Effect Liabilities Increase Decrease No Effect Capital Increase Decrease No Effect 7. The company purchases land by paying half in cash and signing a note payable for the other half. Assets Increase Decrease No Effect Liabilities Increase Decrease No Effect Capital Increase Decrease No Effect Company X sold goods to Client Q worth 5000 in May. The sales invoice shows that the amount will be due in June. 8. In May what is the effect of this entry upon the accounting equation for Company X? Assets Increase Decrease No Effect Liabilities Increase Decrease No Effect Capital Increase Decrease No Effect 9 . In June, Company X receives the 5,000. What is the effect on the accounting equation and which accounts are affected at Company X? Assets Increase Decrease No Effect Liabilities Increase Decrease No Effect Capital Increase Decrease No Effect