Owner's Equity didn't decrease. The owner didn't take anything out of the business. Another Question Go to Table of Contents 3d. Revenues increase what the business owes the owner and expenses decrease what the business owes the owner. Another Question Go to Table of Contents 4a.
Revenue is what the business earns for what it is in business to do.
Another Question Go to Table of Contents 4b. An expense is the cost of doing business. This transaction did not cost the business anything. Another Question Go to Table of Contents 4c. The business does not owe anyone anything.