Question

Paid $400 cash on accounts payable. Made a cash purchase of land for a building site for the business, $89,000. Sold land and received cash of $69,000 (the land was carried on the company's books at $69,000). a. b. C. Received $15,400 cash from customers on account. d. Purchased medical equipment and signed a $90,000 promissory note in e. payment. f. Purchased a flat-screen TV for Smith's home. Paid Smith a cash dividend of 4,000. g. h. Purchased office supplies on account for $1,200. i. Borrowed $62,000 from the bank for use in the business. j. Received $12,000 cash and issued stock to a stockholder.

Answer 1

a) pard 6) Made Cash 400 a cash porclose of land Assels effect Decrease No effect | c) Sold land and receive cash no effect I Assets Effect and Reason for no effect. I cash decreases by 400 As land purchases for cash, cash deere ase and land increase with the same amount land sold, so land decrease and Cash Increase with the same amount. Cash increases and Accounts receivable decreases for t he same amount. Equipment Increases. d) Received Cash from Customer ond no effect. account e) porclased Equepment and Signed NOG