Transaction Analysis (Learning Objective 5 ) 5–10 min.

The following transactions represent part of the activities of Samia Kaakour, Inc. for the first month of its existence. Indicate the effect of each transaction upon the total assets of the business by one of the following phrases: increased total assets; decreased total assets; or no change in total assets.

a. Samia Kaakour bought shares of common stock to start the business by opening a bank account

b. Purchased a computer for cash

c. Purchased office equipment with money borrowed from the bank

d. Paid the first month’s utility bill

e. Collected an accounts receivable

f. Borrowed some money from a bank to provide cash during the low season of the year g. Paid an accounts payable AppendixLO1