Transaction analysis—nonquantitative Indicate the effect of each of the following transactions on total assets, total liabilities, and total owners’ equity. Use + for increase, − for decrease, and (NE) for no effect. The first transaction is provided as an illustration.
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Assets |
Liabilities |
Owners’ Equity |
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a. |
Borrowed cash on a bank loan |
+ |
+ |
NE |
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b. |
Paid an account payable |
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c. |
Sold common stock |
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d. |
Purchased merchandise inventory on account |
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e. |
Declared and paid dividends |
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f. |
Collected an account receivable |
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g. |
Sold merchandise inventory on account at a profit |
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h. |
Paid operating expenses in cash |
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i. |
Repaid principal and interest on a bank loan |