Stockholders' Transaction Assets Liabilities Equity 1. Obtain a loan at the bank. Increase Increase + No effect 2. Purchase a machine to use in operations for cash. 3. Provide services to customers for cash. 4. Pay employee salaries for the current month. 5. Repay loan from the bank in (1) above. 6. Customers pay cash in advance of services. 7. Pay for maintenance costs in the current month. 8. Pay for advertising in the current month. 9. Purchase office supplies on account. 10. Provide services to customers on account. 11. Pay dividends to stockholders.
Stockholders' Transaction Assets Liabilities Equity 1. Obtain a loan at the bank. Increase Increase + No effect 2. Purchase a machine to use in operations for cash. 3. Provide services to customers for cash. 4. Pay employee salaries for the current month. 5. Repay loan from the bank in (1) above. 6. Customers pay cash in advance of services. 7. Pay for maintenance costs in the current month. 8. Pay for advertising in the current month. 9. Purchase office supplies on account. 10. Provide services to customers on account. 11. Pay dividends to stockholders.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Below is a list of activities for Tigers Corporation.
Required:
For each activity, indicate whether the transaction increases, decreases, or has no effect on assets, liabilities, and

Transcribed Image Text:Stockholders'
Transaction
Assets
Liabilities
Equity
1. Obtain a loan at the bank.
Increase
Increase
+
No effect
2. Purchase a machine to
use in operations for cash.
3. Provide services to
customers for cash.
4. Pay employee salaries for
the current month.
5. Repay loan from the bank
in (1) above.
6. Customers pay cash in
advance of services.
7. Pay for maintenance costs
in the current month.
8. Pay for advertising in the
current month.
9. Purchase office supplies
on account.
10. Provide services to
customers on account.
11. Pay dividends to
stockholders.
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