Question
Cracker & Company acquired a building in exchange for its common stock valued at $20,000. What would be the effect of this transaction on the
Cracker & Company acquired a building in exchange for its common stock valued at $20,000.
What would be the effect of this transaction on the accounting equation?
Select one:
a.
| Assets | Liabilities | Shareholders' Equity |
| Increase $20,000 | Decrease $20,000 | No Effect |
b.
| Assets | Liabilities | Shareholders' Equity |
| Increase $20,000 | Increase $20,000 | No Effect |
c.
| Assets | Liabilities | Shareholders' Equity |
| Increase $20,000 | No effect | Increase $20,000 |
d.
| Assets | Liabilities | Shareholders' Equity |
| Decrease $20,000 | Increase $20,000 | No Effect |
Cracker & Company purchased inventory on credit for $4,000.
What would be the effect of this transaction on the accounting equation?
Select one:
a.
| Assets | Liabilities | Shareholders' Equity |
| Increase $4,000 | Decrease $4,000 | No Effect |
b.
| Assets | Liabilities | Equity |
| Decrease $4,000 | Increase $4,000 | No Effect |
c.
| Assets | Liabilities | Shareholders' Equity |
| Increase $4,000 | No effect | Increase $4,000 |
d.
| Assets | Liabilities | Shareholders' Equity |
| Increase $4,000 | Increase $4,000 | No Effect |
Cracker & Company paid a cash dividend to its shareholders in the amount of $14,000.
What would be the effect of this transaction on the accounting equation?
Select one:
a.
| Assets | Liabilities | Shareholders' Equity |
| Decrease $14,000 | No effect | Decrease $14,000 |
b.
| Assets | Liabilities | Shareholders' Equity |
| Decrease $14,000 | Decrease $14,000 | No Effect |
c.
| Assets | Liabilities | Shareholders' Equity |
| Increase $14,000 | Increase $14,000 | No Effect |
d.
| Assets | Liabilities | Shareholders' Equity |
| Decrease $14,000 | Increase $14,000 | No Effect |
Cracker & Company sold merchandise to a customer on credit. The sale price was $8,000.
What would be the effect of this transaction on the accounting equation?
Select one:
a.
| Assets | Liabilities | Shareholders' Equity |
| Increase $8,000 | No Effect | Increase $8,000 |
b.
| Assets | Liabilities | Shareholders' Equity |
| Decrease $8,000 | Decrease $8,000 | No Effect |
c.
| Assets | Liabilities | Shareholders' Equity |
| Increase $8,000 | Increase $8,000 | No Effect |
d.
| Assets | Liabilities | Shareholders' Equity |
| No Effect | Increase $8,000 | Decrease $8,000 |
Cracker & Company sold additional shares of common stock to an investor for $19,000.
What would be the effect of this transaction on the accounting equation?
Select one:
a.
| Assets | Liabilities | Shareholders' Equity |
| Increase $19,000 | No Effect | Decrease $19,000 |
b.
| Assets | Liabilities | Shareholders' Equity |
| Increase $19,000 | Increase $19,000 | No Effect |
c.
| Assets | Liabilities | Shareholders' Equity |
| Decrease $19,000 | Decrease $19,000 | No Effect |
d.
| Assets | Liabilities | Shareholders' Equity |
| Increase $19,000 | No Effect | Increase $19,000 |
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College Accounting A Practical Approach 1-15
Authors: Jeffrey Slater
4th Edition
013142050X, 978-0131420502
