Chapter 3 Homework

Chapter 3 Homework - Accounting 151 Section 16 Patrick...

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Accounting 151 Section 16 Patrick Leblond 09/12/06 Chapter 3 Problems E4: a) 1) The company issued $15,000 worth of stock, thereby increasing both assets and stockholders’ equity by that sum. 2) The company bought $5000 of office equipment, paying $1000 in cash, and the remaining $4000 on credit. The company assets therefore increased by $4000, as did the liabilities. 3) The company bought $750 of supplies and paid cash, causing the total assets to remain unchanged. 4) The company had $7,800 of service revenue, of which $4,400 was cash and the remaining $3,400 as a future payment. The assets and stockholders’ equity thus both increase $7,800. 5) The company used $1,500 in cash to pay of outstanding debt. Both the assets and the liabilities will decrease by that amount. 6) The company paid out $2,000 in dividends using cash. Both the assets and stockholders’ equity will decrease by that amount. 7) The company paid $800 of rent using cash. Both the assets and the stockholders’ equity will decrease by that amount. 8) The company received $450 dollars of future payments early. The resulting changes in the cash and accounts receivables accounts offset each other, leaving the total assets unchanged. 9) The company paid $3,000 in salaries using cash. This transaction caused both
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This note was uploaded on 04/29/2008 for the course ACCT 151 taught by Professor Largay during the Spring '07 term at Lehigh University .

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Chapter 3 Homework - Accounting 151 Section 16 Patrick...

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