What is the net effect of this transaction for each column in the accounting

# What is the net effect of this transaction for each

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What is the net effect of this transaction for each column in the accounting equation? Select "No effect" if the column is unaffected by the transaction. Question Correct Match Selected Match Assets F. \$80,000 increase F. \$80,000 increase Liabilities F. \$80,000 increase F. \$80,000 increase Shareholders' Equity B. No effect B. No effect All Answer Choices A. \$100,000 increase B. No effect C. \$20,000 increase D. \$80,000 decrease E. \$20,000 decrease F. \$80,000 increase 1.5 out of 1.5 points 1.5 out of 1.5 points
Response Feedback: See Module 1, LO5.2 Recording Investing Activities. The company gets Land (+A by \$100,000) and gives Cash (-A by \$20,000) and gives a Note Payable (+L by \$80,000). The net effect is to increase total assets and total liabilities by \$80,000. Question 11 At December 31, Year 1, Lord of the Fries, Inc.’s assets were \$60,000 and liabilities were \$40,000. At December 31, Year 2, its assets are \$130,000 and liabilities are \$50,000. During the year, it did not issue new stock and did not declare or pay dividends. Calculate net income for Year 2. Selected Answer: 60,000 Correct Answer: 60,000 ± 0 Response Feedback: See Module 1, LO 6.5. First, determine the beginning and ending Shareholders' Equity (SE): Assets - Liabilities = SE Second, determine the change in SE. Remember REDS: R = Revenues (increase SE), E = Expenses (decrease SE), D = Dividends (decrease SE), and S = new Stock (increase SE). Beginning SE + R - E - D + S = Ending SE Third, Net Income (NI) = R - E Lastly, solve for NI: Beginning SE + NI - D + S = Ending SE; NI = Ending SE - Beginning SE + D - S Click on this youtube video link to see a similar example solved. Question 12 Record the transaction below. Assets Liabilities Shareholders' Equity Common Stock Retained Earnings Cap & Trade, Inc. borrowed \$5,000 cash by issuing a one- month, 6% note. \$______ \$______ \$______ \$______ TO RECEIVE CREDIT FOR THE QUESTION, AN ANSWER MUST BE SELECTED FOR EACH COLUMN (ASSETS, LIABILITIES, COMMON STOCK, & RETAINED EARNINGS) EVEN IF THERE IS NO EFFECT. IF THERE IS NO EFFECT, SELECT "0 NO EFFECT." Question Correct Match Selected Match Assets E. 5,000 Cash E. 5,000 Cash Liabilities J. 5,000 Note Payable J. 5,000 Note Payable Common Stock K. 0 No effect K. 0 No effect Retained Earnings K. 0 No effect K. 0 No effect All Answer Choices 1.5 out of 1.5 points 1.5 out of 1.5 points
A. (5,000) Interest Expense B. (5,000) Cash C. (5,300) Note Payable D. (5,000) Sales E. 5,000 Cash F. 5,000 Sales G. 5,000 Interest Expense H. 5,000 Common Stock I. (5,000) Common Stock J. 5,000 Note Payable K. 0 No effect L. 5,300 Cash M. (5,000) Note Payable Response Feedback: See Module 1 LO 5.1.2 Recording Borrowings from Creditors. The company gets Cash (+A) and gives a Notes Payable (+L). Question 13 Match the financial statement that reports each of the following. Question Correct Match Selected Match Supplies A. Balance Sheet A. Balance Sheet Supplies Expense C. Income Statement C. Income Statement Cash Paid for Supplies B. Statement of Cash Flows B. Statement of Cash Flows All Answer Choices A. Balance Sheet B. Statement of Cash Flows C. Income Statement Response Feedback: See Module 1, LO 6. Supplies are assets on the balance sheet and report the amount of supplies to be used in the future. Supplies Expense is on the income statement and reports the amount of supplies used during the period. The statement of cash flows reports Cash Paid for Supplies during the period.

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• Spring '14
• Balance Sheet, Generally Accepted Accounting Principles

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