Indicate the Effects on the Accounting Equation of the Following

question 108

Essay

Indicate the effects on the accounting equation of the following business transactions of ABC Service
Company for b)to d)below.The company is a sole proprietorship.Use proper account titles.Transaction a)is answered as a guide.
a)Mary Johnson,the sole proprietor,contributed cash in exchange for capital.
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.

---

Definitions:

Tax Policy

The approach taken by a government in setting the level of taxation and determining what types of taxes to collect.

Great Depression

A severe global economic downturn that took place during the 1930s, leading to widespread unemployment, poverty, and deflation.

Economic Policies

are strategies employed by governments or monetary authorities to influence the economic behavior of a country, including fiscal and monetary policies.

Troubled Asset Relief Program

A U.S. government program created in 2008 to purchase toxic assets and inject capital into banks to stabilize the financial system.