Accounting Help Plzzzzz?

Question

For each of the following items, give an example of a business transaction that has the described effect on the accounting equation:


Increase an asset and increase a liability.
Increase one asset and decrease another asset.
Decrease an asset and decrease owner's equity.
Decrease an asset and decrease a liability.
Increase an asset and increase owner's equity.

Answer 1

Q. Increase an asset and increase a liability.
A. Purchase a fixed asset item on credit. You'd
Dr Fixed assets (increase asset)
Cr A/cs payable (increase liab)

Q. Increase one asset and decrease another asset.
A. Purchase a fixed asset item for cash. You'd
Dr Fixed assets (increase asset)
Cr Cash (decrease asset)

Q. Decrease an asset and decrease owner's equity.
A. Reverse any prepaid expense, say rent, to expenses. You'd
Dr Rent Expense (which wld go to decrease owner's equity eventually)
Cr Prepaid rent (decrease asset)

Q. Decrease an asset and decrease a liability.
A. Pay off any creditor. You'd
Dr A/cs payable (decrease liab)
Cr Cash (decrease asset)

Q. Increase an asset and increase owner's equity.
A. Owner pumps in more cash into the business. You'd
Dr Cash (increase asset)
Cr Owner's equity (increase owner's equity)

Answer 2

Do as I did: Study! In the beginning , you will find no shortcuts in accounting. You must learn the rules: To increase an asset, you debit. Step by step. Work your T-accounts. You must know the normal balances for each account. The transactions examples you are requesting are as simple as it gets. It has been my experience that students do not take accounting for fun, so you must need it. Do yourself a big favor and start out right. Get your book and do the work yourself. Good Luck!