Determining Financial StatementEffects of Sales and Cost of Goods Sold and Issuance of Par...

Determining Financial StatementEffects of Sales and Cost of Goods Sold and Issuance of Par Value Stock

Using the following categories, indicate the effects of the following transactions. Use + for increase and – for decrease and indicate the accounts affected and the amounts.

a.Sales on account were $800 and related cost of goods sold was $350.

b.Issued 5,000 shares of $1 par value stock for $80,000 cash.