Objectives: Explain what a transaction is; show the impact of transactions on the accounting equation.
King Design specializes in imported clothing. During March, King completed a series of transactions.
For each of the following items, give an example of a transaction that has the described effect on the accounting equation of King Design.
a. Increase an asset and increase a liability.
b. Decrease an asset and decrease owners' equity.
c. Decrease an asset and decrease a liability.
d. Increase an asset and increase owners' equity.
e. Increase one asset and decrease another asset.