Question

accounting plus or minus columns, please tell me which one in this list goes for the transactions below

[Choose) [Choose] + liabilties, - stockholders' equity no effect -assets, -liabilities +liabilities, -stockholders' equity, -net income +assets, +liabilities +assets, +stockholders' equity, +net income

Answer 1

For part 1) the correct match will be

+ liabilities, - stockholders equity

Explanation

Liabilities will increase in form of dividend payable and stock holders equity will decrease due to declaration of dividend

Part 2) the correct match will be

- assets, - liabilities

Explanation

Assets will decrease in form of cash and liabilities will decrease in form of wages payable

Part 3) the correct match will be

+liabilities, - stock holders equity, - net income

Explanation

Liabilities will increase in form of wages payable, stockholders equity will decrease due to decrease in net income and net income will decrease due to wages expense increases.

Part4)

The correct answer is

No effect

Explanation

As just signing of a contract doesn't impact the accounting equation ,so their will be no impact.

Part 5)

The correct answer is

+ assets, + stock holders equity, + net income

Explanation

As interest income received, cash increases so assets also increases , net income increases due to interest income and stock holders equity increase due to net income.

Part 6)

The correct answer is

+ assets, +liabilities

Explanation

Cash has been recieved due to which assets has increased and liabilities has increased due to increase in borrowing.