Question

EF1-27 (book/static) Question Help Indicate the effects of the following business transactions on the accounting equation for Sam's Snack Foods, a supplier of snack foods Transaction (a) is answered as a guide (Click the icon to view the transactions.) a. Sam's Snack Foods received cash from Issuance of common stock to stockholders. Increase asset (Cash) Increase equily (Common Stock) b. Cash purchase of land for a building site a. b. Choose from any drop-down list and then click Check Answer 8 parts remaining Clear All Check Answer

Answer 1

a)Sam's Snack Food received cash from issuance of common stock to stockholders

Increase Asset (Cash); Increase Equity (Common Stock)

b)Cash purchase of land for a building site

Decrease asset (Cash); Increase asset (Land)

c)Paid cash on accounts payable

Decrease asset (Cash); Decrease liability (Accounts Payable)

d)Purchased​ equipment; signed a note payable.

Increase asset (Equipment); Increase liability (Notes Payable)

e)Performed service for a customer on account.

Increase asset (Accounts Receivable); Increase equity (Service Revenue)

f)Employees worked for the week but will be paid next Tuesday.

Increase liability (Salaries Payable); Decrease equity (Salaries Expense)

g)Received cash from a customer on accounts receivable.

Increase asset (Cash); Decrease asset (Accounts Receivable)

h)Borrowed money from the bank.

Increase asset (Cash); Increase liability (Notes Payable)

i)Cash divident paid to stock holders

Decrease asset (cash) ; Decrease equity (dividents )

j)Incurred utilites expense on account

Decrease equity(Utilities expense) ; Inrease liability (accounts payable)