Chapter 2, Problem 2.2E

To determine

Accounting equation

Accounting equation is an accounting tool expressed in the form of equation, by creating a relationship between the resources or assets of a company, and claims on the resources by the creditors and the owners. Accounting equation is expressed as shown below:

$\boxed{\text{Assets =Liabilities + Stockholders’ Equity}}$

To indicate: Whether the following transaction increases, decreases, or has no effect on assets, liabilities, and stockholders’ equity.