Business, 22.09.2020 16:01, mixcolin0002
Analyze the impact of business transactions on accounts) The following selected events were experienced by either Smith Eldercare Services, Inc., a corporation, or Tony Smith, its major stockholder. State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected.
a. Paid $400 cash on accounts payable.
b. Made a cash purchase of land for a building site for the business, $89,000.
c. Sold land and received cash of $69,000 (the land was carried on the company's books at $69,000).
d. Received $15,400 cash from customers on account.
e. Purchased medical equipment and signed a $90,000 promissory note in payment.
f. Purchased a flat-screen TV for Smith’s home.
g. Paid Smith a cash dividend of $4,000.
h. Purchased office supplies on account for $1,200.
i. Borrowed $62,000 from the bank for use in the business.
j. Received $12,000 cash and issued stock to a stockholder.
Answers: 3
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Analyze the impact of business transactions on accounts) The following selected events were experien...
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