Indicate the Effects on the Accounting Equation of the Following

question 7

Essay

Indicate the effects on the accounting equation of the following business transactions of ABC Service Corporation for b) to d) below. Use proper account titles. Transaction a) is answered as a guide.
a) Received cash from Mary Johnson; issued common stock to her.
b) Purchased equipment; signed a note payable.

c) Performed services for a customer on account.

d) At the end of the first month, paid office rent.

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Definitions:

Reallocating Resources

The process of distributing resources, such as capital and labor, in a different manner to increase efficiency or achieve a specific objective.

Individual Behavior

The actions or reactions of an individual in response to external or internal stimuli.

Economists

Professionals who study the production, distribution, and consumption of goods and services, analyzing how economies work and how economic agents behave.

Assumption

A belief or statement taken for granted without proof, often forming the basis for further reasoning or arguments.