Question

Use the following identification codes to indicate the effects of each transaction on the accounting equation: I = Increase; D = Decrease; NE = No Effect. Write your answers in the space provided under the accounting equation, being sure to include an identification code for each element of the accounting equation.

A) Service are sold for cash.
B) Equipment is purchased on credit.
C) Payment is made for equipment purchased on credit.
D) Services are sold for credit.
E) Cash is collected from customers for accounts receivable balances.
F) Dividends are paid to stockholders.
G) Land and building are acquired in exchange for shares of common stock.
H) Utility bill is received and recorded.