Types Of Business Transactions
The transaction would increase an asset account and increase a liability account.
The purchase of fixed assets on credit would result in an increase in an asset account and an increase in a liability account. An increase in assets reflects an increase in the asset account, while the increase in the account payable will reflect an increased liability account. Therefore, the increase in assets and liability transaction sides are similar.
The transaction would decrease an asset account and the owner’s equity account.
A transaction involving cash withdrawal from the business will result in a transaction that decreases an asset account and the owner’s equity account. Notably, this is so because when cash is withdrawn from the business, the cash account is decreased. Further, the owner’s equity account decreases due to a reduction in capital.
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The transaction would increase an asset account and the owner’s equity account.
The transaction will increase the asset and the owner’s equity accounts when capital is introduced into the business. The capital, for instance, can be in the form of cash, which increases the cash account. Further, the transaction will be reflected as an increase in the owner’s equity. Thus, both sides will be increased by equal amounts.
The transaction would decrease an asset account and decrease a liability account.
A transaction that involves a payment made to creditors will result in a decrease in an asset account and a decrease in a liability account. The cash account will be essentially reduced when payment is made to creditors. The creditor’s account will also decrease. The two accounts will be decreased in equal amounts.
References
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2018). Financial Accounting with International
Financial Reporting Standards. John Wiley & Sons.
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Question 
Primary Discussion Responses are due by Thursday (11:59:59pm Central), and Peer Responses are due by Saturday (11:59:59pm Central).
Primary Task Response: Within the Discussion Board area, write 200-250 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions with your classmates. Be substantive and clear, and use examples to reinforce your ideas.
Types Of Business Transactions
The general manager of a business encounters many different types of business transactions. Provide an example for each of the following transactions that would describe its effect on the accounting equation. Each situation is independent of the other situations.
The transaction would increase an asset account and increase a liability account.
The transaction would decrease an asset account and decrease the owner’s equity account.
The transaction would increase an asset account and increase the owner’s equity account.
The transaction would decrease an asset account and decrease a liability account.
Responses to Other Students: Respond to 2 of your fellow classmates with a reply of at least 100 words about their primary task response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:
What did you learn from your classmate’s posting?
What additional questions do you have after reading the posting?
What clarification do you need regarding the posting?
What differences or similarities do you see between your posting and other classmates’ postings?