How does the rendering of services on account affect the accounting equation?  

  How does paying a liability in cash affect the accounting equation?  

  How does the payment of dividends affect the accounting equation?  

  How does receiving a bill to be paid next month for services rendered affect the accounting equation?  

  

 

 65.How does the collection of cash from a customer who was previously put on account affect the accounting equation? 

 

  

 

 66.How does the purchase of equipment by signing a note affect the accounting equation? 

 

  

 

 67.Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation? 

 

  

 

 68.The Kennedy Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale, $15,000 was still owed to First National Bank on that purchase. After the sale, The Kennedy Company paid off the loan to First National Bank. What is the effect of the sale and the payoff of the loan on the accounting equation? 

 

  

 

 69.On November 1 of the current year, the assets and liabilities of Jim Chu, M.D., are as follows: Cash, $10,000; Accounts Receivable, $8,200; Supplies, $1,050; Land, $25,000; Accounts Payable, $6,530. What is the amount of stockholders' equity as of November 1 of the current year? 

 

  

 

 70.Al Shea is a stockholder and operator of SawTooth Company. As of the end of its accounting period, December 31, 2007, SawTooth Company has assets of $925,000 and liabilities of $285,000. During 2008, Al Shea invested an additional $50,000 in exchange for capital stock and was paid dividends in the amount of $30,000 from the business. What is the amount of net income during 2008, assuming that as of December 31, 2008, assets were $980,000, and liabilities were $255,000?