Which transactions affect liability accounts?

The following transactions occurred at several different businesses and are not related. INSTRUCTIONS Analyze each of the transactions. For each transaction, set up T accounts. Record the effects of the transaction in the T accounts. Use plus and minus signs to show the increases and decreases. TRANSACTIONS 1. A firm purchased equipment for $16,000 in cash. 2. The owner, Ana Rodriguez, withdrew $4,000 cash. 3. A firm sold a piece of surplus equipment for $3,000 in cash. 4. A firm purchased a used delivery truck for $12,000 in cash. 5. A firm paid $3,600 in cash to apply against an account owed. 6. A firm purchased office equipment for $5,000. The amount is to be paid in 60 days. 7. Kelvin Newton, owner of the company, made an additional investment of $20,000 in cash. 8. A firm paid $1,500 by check for office equipment that it had previously purchased on credit. Analyze: Which transactions affect liability accounts? View Solution:
The following transactions occurred at several different businesses and are

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