In this Chapter, there are a variety of balance sheet transactions to be made in QBO Plus. However, to understand how these transactions affect the general ledger accounts and balance sheet, prepare journal entries $($what accounts are debited and credited$)$ for each of the transactions listed below:

Record the acquisition of a fixed asset

Record the acquisition of a long$-$term investment

Record the sale of common stock

Record the payment of a dividend

Record a long$-$term borrowing $($long$-$term debt$)$

Record the acquisition of a fixed asset by taking on new debt

Record the sale of a fixed asset with book value greater than sale amount

Record the sale of a fixed asset with book value less than sale amount

Record the disposal or discard of a fixed asset $($no sale$)$

What to Do:

Review the journal entries for balance sheet transactions involving equity, debt, investments and fixed assets. Understand how depreciation may affect the journal entry for certain transactions.