Effects of Transactions on Balance Sheet
The following transactions are given:
a. A corporation issued common stock for cash.
b. The firm bought land with part of the cash.
c. The firm issued common stock in exchange for a building and equipment.
d. The firm purchased inventory on account.
e. The firm collected cash from a customer for merchandise sold several months previously.
f. A corporation issued some of its common stock in exchange for a parcel of land.
g. The firm paid cash to its creditors.
h. The firm sells obsolete equipment at its net book value.
Required:
Indicate the effects of the transactions on the balance sheet equation:
ASSETS = LIABILITIES+ OWNERS’ EQUITY