Business, 21.09.2020 18:01 juanitarodriguez

Selected transactions for Green Valley Lawn Care Company are listed below. Describe the effect of each transaction on assets, liabilities, and owner's equity. For example, the first answer is: Increase in assets and increase in owner's equity.

1. Made cash investment to start business. Increase in assets and increase in owner's equity
2. Paid monthly rent.
3. Purchased equipment on account. Increase in assets and increase in liabilities
4. Billed customers for services performed.
5. Withdrew cash for owner's personal use.
6. Received cash from customers billed in (4).
7. Incurred advertising expense on account.
8. Purchased additional equipment for cash. Increase in assets and decrease in assets
9. Received cash from customers when service was performed

Options:
a. Increase in assets and increase in owner's equity
b. Decrease in assets and decrease in owner's equity
c. Increase in assets and increase in liabilities
d. Increase in assets and decrease in assets
e. Increase in liabilities and decrease in owner's equity
f. Decrease in liabilities and increase in owner's equity
g. Increase in liabilities and increase in owner's equity
h. Decrease in liabilities and decrease in owner's equity
i. Increase in assets and decrease in owner's equity
j. Decrease in assets and increase in owner's equity
h. Decrease in assets and decrease in liabilities

Answers: 2

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