I put up arrow for increased assets. horizontal for none and down arrow for decr
ID: 2741283 • Letter: I
Question
I put up arrow for increased assets. horizontal for none and down arrow for decrease.
am I correct? I don't know the answer for a at all
E2-25B. (Le following selected events were experienced by either Landscapes Deluxe, Inc., a corporation, or Bill Tinsley, the major stockholder. State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected. earning Objective 4: Analyze the impact of business transactions on accounts) The or (G) had no effet on the total assets of the business. Identify any specific asset affected a. Received $150,000 cash and issued stock to a stockholder. b. Purchased land for a building site for the business and signed a $100,000 promissory note to the bank. c, purchased supplies on account for $3,000. d. Tinsley used personal funds to purchase a pool table for his home. e. Purchased equipment for the business for $87,000 cash. f. Received $38,000 cash from customers for services performed. olad and iocicarrid on the company's books at $46,000). h. Earned $12,000 in revenue for services performed. The customer promises to pay i. j. Landscapes Deluxe in one month Paid $19,000 cash on accounts payable The business paid Tinsley a cash dividend of $5,000.Explanation / Answer
Answer for question no.a:
Cash was received into business so, the business assets have increased. Since, the question is only about increase or decrease or no effet on total assets, the answer is provided in that perspective.
Answer for question no.b:
As Land is an asset and it is purchased by using a promissory note, assets have increased to that extent.
Answer for question no.c:
Purchased supplies on account, this also has increased assets, because it is purchased on account and there is no cash outflow.
Answer for question no.d:
This transaction has no effect on the assets, because cash which is on assets side is expended to purchase a pool table which is an asset.
Answer for question no.e:
This transation has no effet on assets, because cash which is on assets side is expended to purchase an equipment which is an asset.
Answer for question no.f:
Increase in assets to the extent of cash received for services performed.
Answer for question no.g:
This transaction has no effect because both the note receivable and land are on assets side and so land is sold in exchange for note receivable.
Answer for question no.h:
This transaction has resulted in accounts receivable of $12,000 which is an asset.
Answer for question no.i:
There is a decrease in cash to the extent of $19,000 as accounts payable is paid, hence, it is decrease in assets.
Answer for question no.j:
Business paid Tinsley a cash dividend, so to the business the assets have decreased by $5,000 but for Tinsley cash has come in, so, assets have increased by $5,000.