Zeina product is a start up shoe making firm. It currently owns equipment worth

$100,000 and has cash on hand of $20,000 contributed by Zeinas owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction?

a. Zeina takes out a bank loan. It receives $50,000 in cash and signs a note promising

to pay back the loan over three years.

b. Zeina uses the cash from the bank plus $20,000 of its own funds to finance the

purchase of leather.

c. Zeina sells shoes to Nike, which will market it to the public under the Nike name. Zeina

accepts payment in the form of 5,000 shares of Nike stock.

d. Zeina sells the shares of stock for $25 per share and uses part of the proceeds to

payoff the bank loan.