Explain briefly how each of the following transactions would affect a company’s balance sheet. (Remember, assets must equal liabilities plus owners’ equity before and after the transaction.)

a. Sale of used equipment with a book value of $300,000 for $500,000 cash.

b. Purchase of a new $80 million building, financed 40 percent with cash and 60 percent with a bank loan.

c. Purchase of a new building for $60 million cash.

d. A $40,000 payment to trade creditors.

e. A firm’s repurchase of 10,000 shares of its own stock at a price of $24 per share.

f. Sale of merchandise for $80,000 in cash.

g. Sale of merchandise for $120,000 on credit.

h. A dividend payment to shareholders of $50,000.

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