Question
Following are the transactions of Dennen, Inc., for the month of January. Borrowed $25,000 from a local bank. Lent $8,600 to an affiliate; accepted a
Following are the transactions of Dennen, Inc., for the month of January.
-
Borrowed $25,000 from a local bank.
-
Lent $8,600 to an affiliate; accepted a note due in one year.
-
Sold to investors 60 additional shares of stock with a par value of $0.10 per share and a market price of $5 per share; received cash.
-
Purchased $20,500 of equipment, paying $4,400 cash and signing a note for the rest due in one year.
-
Declared and paid $3,000 in dividends to stockholders.
For each of the above transactions of Dennen, Inc., for the month of January, indicate the accounts, amounts, and direction of the effects (+ for the increase and - for decrease) on the accounting equation. A sample is provided.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started