Describe how transactions of Lucent Technologies Inc. wouldaffect the three elem
ID: 2457562 • Letter: D
Question
Describe how transactions of Lucent Technologies Inc. wouldaffect the three elements of the accounting equation.
a. Received cash fromissuing stock
b. Made cash sales
c. Received cash from theissuance of long-term debt.
d. Paid research and developmentexpenses for the current year.
e. Purchased machinery andequipment for cash.
f. Received proceeds fromselling a portion of manufacturing operations for a gain on thesale.
g. Paid off long-term debt.
h. Paid employee pension expensesfor the current year.
i. Paid taxes.
j. Paid officersalaries.
k. Paid selling expenses.
l. Paid dividends.
Explanation / Answer
A Increase in asset, increase incapital B Increase in asset, decrease in another asset C Increase in asset, increase in liabilities D Decrease in asset, Decrease in capital E Decrease in asset, increase in another asset F Increase in asset, decrease in another asset,increase in capital G Decrease in asset, Decrease in liabilities H Decrease in asset, Decrease in capital I Decrease in asset, Decrease in capital J Decrease in asset, Decrease in Capital K Decrease in asset, Decrease in Capital L Decrease in asset, Decrease in Capital