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:

Profit-oriented Business

A business entity that focuses primarily on generating profits or financial gains as its main objective.

Accounting

The systematic process of recording, measuring, and communicating financial information to help in making informed business decisions.

Total Liabilities

The aggregate of all debts and other legal obligations of an individual or company due to other entities.

Total Assets

The sum of all assets owned by a business, including current, fixed, and intangible assets, representing its overall value.