Accounting - College Level - Ch 2

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Paid $400 cash on accounts payable

• Decrease

• No Effect

• Increase

Effect on Total asset -

Made a cash purchase of land for a building site for the business, $89,000.

• Decrease

• No Effect

• Increase

Effect on Total asset -

Sold land and received cash of $69,000 (the land was carried on the company's books at $69,000).

• Decrease

• No Effect

• Increase

Effect on Total asset -

Received $15,400 cash from customers on account.

• Decrease

• No Effect

• Increase

Effect on Total asset -

Purchased a flat-screen TV for Smith's home.

• Decrease

• No Effect

• Increase

Effect on Total asset -

Received $12,000 cash and issued stock to a stockholder.

• Decrease

• No Effect

• Increase

Effect on Total asset -

Purchased medical equipment and signed a $90,000 promissory note in payment.

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• No Effect

• Increase

Effect on Total asset -

Paid Smith a cash dividend of $4,000.

• Decrease

• No Effect

• Increase

Effect on Total asset -

Borrowed $62,000 from the bank for use in the business.

• Decrease

• No Effect

• Increase

Effect on Total asset -

Purchased office supplies on account for $1,200.

• Decrease

• No Effect

• Increase