Stockholders' Transaction Assets Liabilities Equity %3D 1. Issue common stock in exchange for cash. Increase No effect + Increase 2. Purchase business supplies on account. 3. Pay for legal services for the current month. 4. Provide services to customers on account. 5. Pay employee salaries for the current month. 6. Provide services to customers for cash. 7. Pay for advertising for the current month. 8. Repay loan from the bank. 9. Pay dividends to stockholders. 10. Receive cash from customers in (4) above. 11. Pay for supplies purchased in (2) above.
Stockholders' Transaction Assets Liabilities Equity %3D 1. Issue common stock in exchange for cash. Increase No effect + Increase 2. Purchase business supplies on account. 3. Pay for legal services for the current month. 4. Provide services to customers on account. 5. Pay employee salaries for the current month. 6. Provide services to customers for cash. 7. Pay for advertising for the current month. 8. Repay loan from the bank. 9. Pay dividends to stockholders. 10. Receive cash from customers in (4) above. 11. Pay for supplies purchased in (2) above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
Below is a list of activities for Jayhawk Corporation.
Required:
For each activity, indicate whether the transaction increases, decreases, or has no effect on assets, liabilities, and
![Stockholders'
Transaction
Assets
Liabilities
Equity
%3D
1. Issue common stock in
exchange for cash.
Increase
No effect
+
Increase
2. Purchase business
supplies on account.
3. Pay for legal services for
the current month.
4. Provide services to
customers on account.
5. Pay employee salaries for
the current month.
6. Provide services to
customers for cash.
7. Pay for advertising for the
current month.
8. Repay loan from the bank.
9. Pay dividends to
stockholders.
10. Receive cash from
customers in (4) above.
11. Pay for supplies
purchased in (2) above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8336d40-3a29-4def-9306-7c805705df0c%2F133f5835-a805-4d2a-907a-fbfde5e0bc12%2F5kty6ie.png&w=3840&q=75)
Transcribed Image Text:Stockholders'
Transaction
Assets
Liabilities
Equity
%3D
1. Issue common stock in
exchange for cash.
Increase
No effect
+
Increase
2. Purchase business
supplies on account.
3. Pay for legal services for
the current month.
4. Provide services to
customers on account.
5. Pay employee salaries for
the current month.
6. Provide services to
customers for cash.
7. Pay for advertising for the
current month.
8. Repay loan from the bank.
9. Pay dividends to
stockholders.
10. Receive cash from
customers in (4) above.
11. Pay for supplies
purchased in (2) above.
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