Question

Directions: for each of the following transactions, select the two accounts in the accounting equation that are changed. decide if each account is increased or decreased. place a " " in the column if the account is increased. place a "−" in the column if the account is decreased. transactions 1–2. received cash from owner nicole mcgraw as an investment. 3–4. paid cash for supplies. 5–6. paid cash for insurance. 7–8. bought supplies on account from hyde park office supplies. 9–10. paid cash on account to hyde park office supplies.

Answer 1

For each transaction, two accounts in the accounting equation are changed. For example, receiving cash from the owner as an investment increases the Owner's Equity and Cash accounts.

Step-by-step explanation:

For each transaction mentioned, we need to identify the two accounts in the accounting equation that are changed and determine if they are increased or decreased. Let's go through each transaction:

1. Nicole McGraw's cash investment would increase the Owner's Equity account and the Asset account for Cash.
2. Paying cash for supplies would decrease the Asset account for Cash and increase the Expense account for Supplies.
3. Paying cash for insurance would decrease the Asset account for Cash and increase the Expense account for Insurance.
4. Buying supplies on account from Hyde Park Office Supplies does not involve a change in Asset or Liability accounts.
5. Paying cash on account to Hyde Park Office Supplies would decrease the Asset account for Cash and decrease the Liability account for Accounts Payable.