A number of business transactions carried out by Green River Frame are shown below: The owner invested cash in the business. Purchased a computer on credit Purchased office equipment for cash. Purchased small office building for cash and credit both. Collected notes receivables. Sold land for cash at a price equal to its cost. Borrowed money from bank. Paid a lability. Received cash from computer store. Owner’s drawing. Instructions: Indicate the effects of each of these transactions upon the total amounts of the company’s assets, liabilities and owner’s equity. Organize your answer in tabular form using the column headings shown below and the code letters I for increase, D for decrease and NE for no effect.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A number of business transactions carried out by Green River Frame are shown below:

  1. The owner invested cash in the business.
  2. Purchased a computer on credit
  3. Purchased office equipment for cash.
  4. Purchased small office building for cash and credit both.
  5. Collected notes receivables.
  6. Sold land for cash at a price equal to its cost.
  7. Borrowed money from bank.
  8. Paid a lability.
  9. Received cash from computer store.
  10. Owner’s drawing.

Instructions: Indicate the effects of each of these transactions upon the total amounts of the company’s assets, liabilities and owner’s equity. Organize your answer in tabular form using the column headings shown below and the code letters I for increase, D for decrease and NE for no effect.

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