For each of the following transactions, determine whether or not there is an increase, decrease, or no change in total assets
a. The owners each contributed $4,000 to start the business.
b. Paid monthly rent of $1,200.
c. Received $11,300 in cash from sales.
d. Recorded a decrease in inventory of $4,500 for the amounts sold.
e. Purchased equipment worth $7,500 with cash.
f. Borrowed $9,000 from the bank.
g. Paid employees $860.
h. Purchased $4,400 worth of inventory for cash.
a. Increase,
b. Decrease,
c. Increase,
d. Decrease,
e. No change,
f. Increase,
g. Decrease,
h. No change
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If you do not budget for unexpected expenses in a given month, you will likely experience a(n)
A) cash shortage. B) cash surplus. C) increase in assets. D) decrease in liabilities.
If the trial balance does not balance, several steps can be taken to find the error. Which step will probably NOT help you find the error?
A) Tracing each account back and forth from the journal to the ledger. B) Divide the out-of-balance amount by 2. C) Divide the out-of-balance amount by 9. D) Divide the out-of-balance amount by 5.