Question

QUESTION 2 Record the transaction below Shareholders' Equity The following events took place in the company's first month of business AssetsLiabilities Com mon Stock Retained Earnings Issued a note for a bank loan TO RECEIVE CREDIT FOR THE QUESTION, AN ANSWER MUST BE SELECTED FOR EACH COLUMN (ASSETS, LIABILITIES, CONTRIBUTED CAPITAL, & RETAINED EARNINGS) EVEN IF THERE IS NO EFFECT. IF THERE IS NO EFFECT, SELECT "O NO EFFECT." 4 Assets -Liabilities -Common Stock A. 0 No Effect S. 8,120 Sales Revenue C. (8,000) Cash (8,000) Common Stock E. 8,000 Cash F. (8,000) Interest Expense Retained Earnings 8,000 Common Stock H. 8,000 Interest Expense I. 8,000 Note Payable J. 8,120 Cash K. (8,040) Note Payable L. 8,040 Cash M. (8,000) Note Payable

Answer 1

Solution:

Assets = E. 8000 Cash

Liabilities = I. 8000 Note Payable

Common Stock = A. 0 No Effect

Retained Earnings = A. 0 No Effect

	Assets	Liabilities	Stockholders' Equity
			Common Stock	Retained earnings
Issued a note for a Bank Loan	$8,000	$8,000	$0	$0
	E. Cash	I. Note Payable	A. No effect	A. No effect