Answer:
Transaction Assets = Liabilities + Stockholder's
Equity
1 Issue common stock Increase = No Effect + Increase
in exchange for cash
2 Purchase business Increase = Increase + No Effect
supplies on account
3 Pay for legal service Decrease = No Effect + Decrease
for the current month
4 Provide services to Increase = No Effect + Increase
customer on account
5 Pay employee salaries Decrease = No Effect + Decrease
for the current month
6 Provide services to Increase = No Effect + Increase
customer for cash
7 Pay for advertising Decrease = No Effect + Decrease
for the current month
8 Repay loan from Decrease = Decrease + No Effect
the bank
9 Pay dividends to Decrease = No Effect + Decrease
stockholders
10 Receive cash from No Effect = No Effect + No Effect
customer in (4) above
11 Pay for supplies Decrease = Decrease + No Effect
purchased in (2) above