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. If no effect, indicate the reason. Transaction Asset effect Account affected or why assets are not affected a. Paid $400 cash on accounts payable. Decreased Cash b. Made a cash purchase of land for a building site for the business, $89,000. c. Sold land and received cash of $69,000 (the land was carried on the company's books at $69,000). No effect d. Received $15,400 cash from customers on account. Increased Accounts Receivable e. Purchased medical equipment and signed a $90,000 promissory note in payment.

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Business

Giovani

2 March, 11:34

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. If no effect, indicate the reason. Transaction Asset effect Account affected or why assets are not affected a. Paid $400 cash on accounts payable. Decreased Cash b. Made a cash purchase of land for a building site for the business, $89,000. c. Sold land and received cash of $69,000 (the land was carried on the company's books at $69,000). No effect d. Received $15,400 cash from customers on account. Increased Accounts Receivable e. Purchased medical equipment and signed a $90,000 promissory note in payment.

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Judith Sweeney · Answer 1

(a) Asset Effect : Decrease, Cash decrease by $400.

(b) Asset Effect : No effect, cash decreases by $89,000 and on the other hand assets increases by $89,000.

(c) Asset Effect : No effect, cash increases by $69,000 and on the other hand assets decreases by $69,000.

(d) Asset Effect : No effect, cash increases by $15,400 and on the other hand Accounts receivables decreases by $15,400.

(e) Asset Effect : Increases, Medical equipment added to the assets.