1. Carver owes one of its suppliers $120,000 on account for past purchases. Carver sent this supplier $50,000 to pay down the account. Accounts payable will (increase/decrease) by $50,000 Cash will (increase/decrease) by $50,000 2. Carver has $200,000 of long-term bonds outstanding that pay investors 8% annual interest at the end of the year. Carver has just made this payment to bond investors. (Interest expense/research and development expense/common stock/net income/inventory) will (increase/decrease) by $16,0000 (Cash/Accounts receivable/common stock/fixed assets/cost of goods sold) will (increase/decrease) by $16,000 3. Carver paid $1,500 to the utility company to cover this month's electric bill. (operating expense/accounts payable/sales revenue) will (increase/decrease) by $1,500 (Cash/cost of goods sold/ tax expense/ retained earnings/ notes payable) will (increase/decrease) by $1,500 4. Carver issued new long-term bonds at their par value of $300,000 to fund a new investment project. (accrued liabilities/cost of goods sold/ tax expense/ fixed assets/ long-term liabilities) will (increase/decrease) by $300,000 (Net income/cost of goods sold/preferred stock/interest expense/Cash) will (increase/decrease) by $300,000

5. Carver closed a large sale to a major customer for $200,000, though the inventory was only valued at $140,000 on the company's balance sheet. The customer paid $70,000 upfront and has agreed to pay the rest of the bill in the next month. (Sales revenue/net income/accrued liabilities/operating expense) will (increase/decrease) by $200,000 (Cash/fixed assets/net income/depreciation/long-term liabilities) will (increase/decrease) by $70,000 (Accounts receivable/depreciation/operating expense/tax expense) will (increase/decrease) by $130,000 (Inventory/accrued liabilities/accounts payable/tax expense/common stock) will (increase/decrease) by $140,000 (Cost of goods sold, depreciation, R&D expense/long-term liabilities/fixed assets) will (increase/decrease) by $140,000

answer:

1. Carver owes one of its suppliers $120,000 on account for past purchases. Carver sent this supplier $50,000 to pay down the account. Accounts payable will (decrease) by $50,000 Cash will (decrease) by $50,000 2. Carver has $200,000 of long-term bonds outstanding that pay investors 8% annual interest at the end of the year. Carver has just made this payment to bond investors. (Interest expense) will(decrease) by $16,000 (Cash) will (decrease) by $16,000 3. Carver paid $1,500 to the utility company to cover this month's electric bill. (operating expense) will (increase) by $1,500 (Cash) will (decrease) by $1,500 4. Carver issued new long-term bonds at their par value of $300,000 to fund a new investment project. (long-term liabilities) will (increase) by $300,000 (Cash) will (increase) by $300,000

5.Sales will increase by $200,000 Cash will increase by $70,000 Accounts receivable will increase by $130,000 Inventory will decrease by $140,000 Cost of good sold will increase by $140,000