(Learning Objective 1: Analyzing transactions) The following selected events were experienced by either Simple Solutions, Inc., a corporation, or Bob Gallagher, the major stockholder. State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected.
a. Received $30,000 cash and issued stock to a stockholder.
b. Purchased equipment for $75,000 cash.
c. Paid $10,000 cash on accounts payable.
d. Gallagher used personal funds to purchase a flat screen TV for his home.
e. Purchased land for a building site and signed an $80,000 promissory note to the bank.
f. Received $17,000 cash from customers for services performed.
g. Sold land and received a note receivable of $55,000 (the land was carried on the company’s books at $55,000).
h. Earned $25,000 in revenue for services performed. The customer promises to pay Simple Solutions in one month.
i. Purchased supplies on account for $5,000.
j. The business paid Gallagher a cash dividend of $4,000.
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