Indicate the effect each of the following transactions has on the accounting equation (i.e., assets, liabilities, and equity). Enter the number corresponding to your answer in the box provided. Answer choices may be used once, more than once, or not at all. Be careful with matching questions because carmen randomizes the matches. Thus, if you print out the quiz to work on it and then enter your answers later in the week, it is very likely the order of the matches will be different. Therefore, exercise caution when entering your answers into carmen. Quiz scores will not be adjusted for errors in entering choices.
ABC Company received $30,000 cash from a customer for services to be performed later
ABC Company sold common stock to investors for $40,000 cash
ABC Company received and paid a $20,000 utility bill
ABC Company collected a $10,000 account receivable from a customer
ABC Company recorded the adjusting entry to accrue salaries of $10,000 for the year
1. assets increase; liabilities increase; equity decrease
2. assets decrease; liabilities decrease; equity no effect
3. assets increase; liabilities no effect; equity increase
4. assets no effect; liabilities no effect; equity no effect
5. assets no effect; liabilities increase; equity decrease
6. assets increase; liabilities increase; equity increase
7. assets increase; liabilities increase; equity no effect
8. assets no effect; liabilities decrease; equity increase
9. assets decrease; liabilities no effect; equity decrease