Required: 1. Conceptual Connection: Indicate whether or not each item qualifies as a transaction and should be recorded in the accounting system. a. Boatsman sent its customers a new price list. Prices were increased an average of 3% on all items. This transaction for recognition because receiving a new price list affect the accounting equation. b. Boatsman accepted an offer of $150,000 for land that it had purchased 2 years ago for $130,000. Cash and the deed for the property are to be exchanged in 5 days. This transaction for recognition because the offer affect the accounting equation. c. Boatsman accepted $150,000 cash and gave the purchaser the deed for the property described in Item b. This transaction constitute performance. for recognition because the receipt of cash by Boatsman and the delivery of the deed d. Boatsman's president purchased 600 shares of the firm's common stock from another stockholder. The president paid $15 per share. The former stockholder had purchased the stock from Boatsman for $4 per share. This transaction for recognition because the total of common stock of Boatsman changed as a result of this transaction. e. Boatsman leases its delivery trucks from a local dealer. The dealer also performs maintenance on the trucks for Boatsman. Boatsman received a $1,254 bill for maintenance from the dealer. This transaction equity. for recognition, because Boatsman Incurred an expense that will change stockholders' Previous Next