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Describe whether the transaction will increase, decrease, or will have no effect on A, L, or S.E. Transaction Assets = Liabilities + Stockh. Equity Example:
Describe whether the transaction will increase, decrease, or will have no effect on A, L, or S.E.
Transaction | Assets | = | Liabilities | + | Stockh. Equity |
Example: Obtain a loan. | Incr. | = | Incr. | + | No effect |
Buy equipment with cash. | = | + | |||
Prepay with cash for insurance. | = | + | |||
Pay employees' salaries with cash. | = | + | |||
Purchase office supplies on account. | = | + | |||
Pay accounts payable. | = | + | |||
Provide service to customers on account. | = | + | |||
Provide service to customers in cash. | = | + | |||
Pay cash for utilities for the current month. | = | + | |||
Pay cash dividends to stockholders. | = | + | |||
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