Analyze each of the following transactions and determine the effect on the accounting equation.
1.Purchased three months' worth of prepaid advertising for $300.
2.Paid $500 cash on an account payable.
3.Paid $100 for supplies.
4.Performed $4,000 of services on account.

Question

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The Answer of Analyze each of the following transactions and determine the effect on the accounting equation.
1.Purchased three months' worth of prepaid advertising for $300.
2.Paid $500 cash on an account payable.
3.Paid $100 for supplies.
4.Performed $4,000 of services on account.

Analyze Each of the Following Transactions and Determine the Effect