EXERCISES Ex 3-1. Effects of bu: ess transactions Following are the possible effects of a business transaction a. Increase in asset and increase in lability b. Decrease in asset and decrease in liability G Increase in one asset and decrease in another form of asset d. Increase in asset and increase in capital e. Increase one asset, increase liability, and decrease capital f Decrease in asset and decrease in capital. & Decrease in Asset, decrease in capital and increase in liability h. Increase in one asset, decrease in another form of asset and increase in liability i Increase in one asset, increase in another form of asset, increase in capital j- Increase in asset, decrease in another form of asset and increase in capital Select your answer from above. Write only the letter of your choice on the blank provided. citi iBseswed money from a financing institution, amount received is net of service charges. 2 Purchased office equipment for cash. 3 Rendered services receiving 90-day note. (4. Various expenses incurred and paid. Purchased furniture. Terms: 60-day note. Owner invested cash. Billed the client for services rendered. Purchased various office supplies on account.9,_____ Payment of accolunts payable. 10.___ Withdrawal of the owner for personal use. Purchased office equipments paying 20% down payment aad “the balance, 30 days. Purchased furniture on cash basis. The amount paid includes 12% VAT. Collected customer's note in full with interest. Paid account to a supplier in full. Collected note receivable + interest revenue for the month and scheduled payment ‘month.Ex3-2, Financial Statement Classification For each of the followin, the account is Balance S) account; (2) DR (debit) account. 8 account, indicate on the space provided, (1) BS if eet account and IS if the account is income statement or CR (credit) to identify the normal balance of the | | BS or lS DR or CR 1. Accounts Payable 2. Office Supplies || 3. Office Supplies expense 4, Salaries Payable see Owner's Equity ee