3.Adams Enterprises had the following events occur during a recent month. For each event, determine which of the categories in the firm's accounting system would be changed. If a category would increase, indicate this with a plus (+). If a category would decrease, indicate this with a minus (-). If a category would not change, leave that line blank. (Item "a" is completed as an example.)
NOTE: Do NOT make entries to the accounting system here. Instead, you are determining the EFFECT of a transaction on account balances.
AssetsLiabilitiesEquityRevenueExpense
a.$8,000 was borrowed from a bank on a note payable++
b.Inventory was sold for cash at a price above cost
c.Equipment costing $5,000 was purchased for cash
d.Services were performed for customers who paid cash
e.Inventory was purchased for cash
f.Owners contributed cash to start the company
4.Young & Company completed the following transactions during October, its first month of operations:
1. Owners invested $60,000 cash in the business.
2. $1,800 was paid for one month's office rent.
3. Equipment was purchased by signing a $8,000 note.
4. Services were performed for customers for $5,000 cash.
5. Goods were sold to customers for $8,000 cash.
6. Paid $2,000 on the note signed in transaction #3.
Required:
After these transactions, what is the total amount of:
a. Assets
b. Liabilities
c. Owners' equity
d. Net income