1. Received $50,000 cash and issued stock to the owners 2. Paid $40,000 cash for land Bought $3,700 of supplies on account Received $7,000 cash from 4. customers for service revenue earned 3. 11. For each Item, Indicate the Impact of that transaction on assets, llabilities, and equity. Assume that all transactions, unless stated otherwise, are in cash. 5. Transaction Performed services for customers on account, $3,000 Paid cash expenses: rent, $1,100; 6. employee salary, $1,200; utilities, $400 Assets (increase + or decrease -) = Liabilities (increase + or decrease-) + Equity (increase + or decrease -)
1. Received $50,000 cash and issued stock to the owners 2. Paid $40,000 cash for land Bought $3,700 of supplies on account Received $7,000 cash from 4. customers for service revenue earned 3. 11. For each Item, Indicate the Impact of that transaction on assets, llabilities, and equity. Assume that all transactions, unless stated otherwise, are in cash. 5. Transaction Performed services for customers on account, $3,000 Paid cash expenses: rent, $1,100; 6. employee salary, $1,200; utilities, $400 Assets (increase + or decrease -) = Liabilities (increase + or decrease-) + Equity (increase + or decrease -)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1.
N
2.
3.
4.
5.
11. For each Item, Indicate the Impact of that transaction on assets, llabilities, and equity. Assume
that all transactions, unless stated otherwise, are in cash.
Transaction
Received $50,000 cash and issued
stock to the owners
Paid $40,000 cash for land
Bought $3,700 of supplies on
account
Received $7,000 cash from
customers for service revenue
earned
Performed services for customers on
account, $3,000
Paid cash expenses: rent, $1,100;
6. employee salary, $1,200; utilities,
$400
Assets
(increase + or
decrease -)
Liabilities
(increase + or
decrease -)
+
Equity
(increase + or
decrease -)
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