Use the following identification codes to indicate the effects of each transaction on the accounting equation: I = Increase; D = Decrease; NE = No Effect. Write your answers in the space provided under the accounting equation, being sure to include an identification code for each element of the accounting equation.

A) Service are sold for cash.
B) Equipment is purchased on credit.
C) Payment is made for equipment purchased on credit.
D) Services are sold for credit.
E) Cash is collected from customers for accounts receivable balances.
F) Dividends are paid to stockholders.
G) Land and building are acquired in exchange for shares of common stock.
H) Utility bill is received and recorded.

To determine the effects of each transaction on the accounting equation, we need to understand how each transaction affects the various elements of the accounting equation: Assets, Liabilities, and Owner's Equity. Let's analyze each transaction:

A) Service are sold for cash.
- Cash (Asset) increases: I
- Accounts Receivable (Asset) decreases: D
- Owner's Equity remains the same: NE

B) Equipment is purchased on credit.
- Equipment (Asset) increases: I
- Accounts Payable (Liability) increases: I
- Owner's Equity remains the same: NE

C) Payment is made for equipment purchased on credit.
- Equipment (Asset) remains the same: NE
- Accounts Payable (Liability) decreases: D
- Cash (Asset) decreases: D

D) Services are sold for credit.
- Accounts Receivable (Asset) increases: I
- Owner's Equity remains the same: NE

E) Cash is collected from customers for accounts receivable balances.
- Cash (Asset) increases: I
- Accounts Receivable (Asset) decreases: D
- Owner's Equity remains the same: NE

F) Dividends are paid to stockholders.
- Cash (Asset) decreases: D
- Owner's Equity (Dividends) decreases: D

G) Land and building are acquired in exchange for shares of common stock.
- Land and Building (Asset) increases: I
- Common Stock (Owner's Equity) increases: I

H) Utility bill is received and recorded.
- Utility Expense (Expense) increases: I
- Accounts Payable (Liability) increases: I
- Owner's Equity remains the same: NE

Now, let's write the answers in the space provided under the accounting equation, including the identification code for each element:

Assets = Liabilities + Owner's Equity

A) Service are sold for cash:
- Assets: +Cash (I) -Accounts Receivable (D)
- Liabilities: NE
- Owner's Equity: NE

B) Equipment is purchased on credit:
- Assets: +Equipment (I)
- Liabilities: +Accounts Payable (I)
- Owner's Equity: NE

C) Payment is made for equipment purchased on credit:
- Assets: -Cash (D)
- Liabilities: -Accounts Payable (D)
- Owner's Equity: NE

D) Services are sold for credit:
- Assets: +Accounts Receivable (I)
- Liabilities: NE
- Owner's Equity: NE

E) Cash is collected from customers for accounts receivable balances:
- Assets: +Cash (I) -Accounts Receivable (D)
- Liabilities: NE
- Owner's Equity: NE

F) Dividends are paid to stockholders:
- Assets: -Cash (D)
- Liabilities: NE
- Owner's Equity: -Dividends (D)

G) Land and building are acquired in exchange for shares of common stock:
- Assets: +Land and Building (I)
- Liabilities: NE
- Owner's Equity: +Common Stock (I)

H) Utility bill is received and recorded:
- Assets: NE
- Liabilities: +Accounts Payable (I)
- Owner's Equity: NE

Remember, these answers are based on the identification codes provided (I = Increase, D = Decrease, NE = No Effect).