E2-26B (L earn i ng Obj ec tiv e 4: Analy z e t he imp ac t o f bu s i ness t ransac ti ons on acco

E2-26B (Learning Objective 4: Analyze the impact of business transactions on accounts) The following selected events were experienced by either Simply Sensible, Inc., a corporation, or Bill Griggs, the major stockholder. State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected.

a.    Received $27,000 cash and issued stock to a stockholder.

b.   Purchased equipment for $78,000 cash.

c.    Paid $16,000 cash on accounts payable.

d.   Griggs used personal funds to purchase a pool table for his home.

e.    Purchased land for a building site and signed an $87,000 promissory note to the bank.

f.     Received $19,000 cash from customers for services performed.

g.    Sold land and received a note receivable of $61,000 (the land was carried on the company’s books at $61,000).

h.   Earned $30,000 in revenue for services performed. The customer promises to pay Simply Sensible in one month.

i.     Purchased supplies on account for $3,000.

j. The business paid Griggs a cash dividend of $6,000.

 

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