Indicate the effects on the accounting equation of the follo

Indicate the effects on the accounting equation of the following business transactions of Mayflower Service Corporation for b) to d) below. Use proper account titles. Transaction a) is answered as a guide

a) Received cash from Don Jones; issued common stock to him.
What will be an ideal response

ANSWER

Increase asset (Cash); Increase equity (Common Stock)

b) Received cash from a customer on accounts receivable.
c) Paid cash dividends to stockholders.
d) Paid cash on accounts payable.