E2-26B. (Learning Objective 1: Analyzing transactions) The following selected events were experienced by either Simple Solutions, Inc., a corporation, or Bob Gallagher, the major shareholder. State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected.

a. Received 25,000 cash and issued shares to a shareholder.

b. Purchased equipment for 62,000 cash.

c. Paid 11,000 cash on accounts payable.

d. Gallagher used personal funds to purchase a flat screen TV for his home.

e. Purchased land for a building site and signed a 95,000 promissory note to the bank.

f. Received 18,000 cash from customers for services performed.

g. Sold land and received a note receivable of 45,000 (the land was carried on the companys books at 45,000).

h. Earned 32,000 in revenue for services performed. The customer promises to pay Simple Solutions in one month.

i. Purchased supplies on account for 4,500.

j. The business paid Gallagher a cash dividend of 5,000.