All business transactions affect assets (resources owned), liabilities (amounts owed), stockholders€™ equity (ownership interest), or some combination of these items. Following is an analysis of the equal dollar effects of two transactions.

Required:
Using the format above, analyze the effects of each of the following transactions for Fuente & Demond Realtors, Inc. on the firm€™s assets, liabilities, and stockholders€™ equity.
(a) Purchased equipment for $12,500 cash.
(b) Sold an additional $17,000 of stock in the firm to Fuente and Demond.
(c) Paid $1,500 owed to an office supply store for a purchase made the previous month.
(d) Purchased supplies for $4,000 on credit.

Transcribed Image Text:

Transaction (a) Purchased Assets Liabilities + Equity +$1,000 +S1,000 $0 S1,000 of office supplies on credit (b) Purchased a +200 $200 0 set of tires for $200 cash