Effects of transactions on the accounting equation
During 2008, Intel entered into the transactions listed below.
a. On a separate sheet of paper, complete the following chart to show the effect of these transactions on the accounting equation and compute the net effect (dollars in millions).
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Transaction |
Assets = Liabilities + Shareholders” Equity |
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1.Paid $5,197 to purchase property,plant and equipment. |
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2.Issued common stock for $1,105. |
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3.Recorded depreciation of $4,360. |
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Net effect |
b. Which one of the transactions did not appear to affect the accounting equation? Why didn”t it?