79) For each of the following transactions, determine whether or not there is an increase, decrease, or no change in total assets.
a. The owners each contributed $4,000 to start the business.
b. Paid monthly rent of $1,200.
c. Received $11,300 in cash from sales.
d. Recorded a decrease in inventory of $4,500 for the amounts sold.
e. Purchased equipment worth $7,500 with cash.
f. Borrowed $9,000 from the bank.
g. Paid employees $860.
h. Purchased $4,400 worth of inventory for cash.
80) Identify the effects of each transaction on total assets, total liabilities, and total shareholders' equity by writing increase or decrease.
Shareholders' equity
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Transaction
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Total assets
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Total liabilities
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Contributed capital
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Retained earnings
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a.
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Received cash and issued common stock.
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b.
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Purchased inventory for cash.
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c.
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Purchased supplies for cash.
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d.
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Sold inventory to customers for cash.
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e.
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Paid advertising for the month.
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81) Analyze each of the following cash transactions and show the effect of each transaction on the accounting equation by writing the dollar amounts and account titles in the appropriate columns. If amount is negative put the amount in "()" or put a "-" in front of the amount.
Shareholders' equity
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Transaction
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Total assets
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Total liabilities
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Contributed capital
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Retained earnings
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a.
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Issued $10,000 of stock.
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b.
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Paid $11,000 for inventory.
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c.
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Paid $2,500 in advertising expense.
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d.
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Earned $18,000 in sales revenues.
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e.
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The cost of the goods sold in d. was $10,000.
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