All business transactions affect assets resources owned liabilities amounts owed
All business transactions affect assets (resources owned), liabilities (amounts owed), stockholders’ equity (ownership interest), or some combination of these items. Following is an analysis of the equal dollar effects of two transactions.
Required:
Using the format above, analyze the effects of each of the following transactions for Fuente & Demond Realtors, Inc. on the firm’s assets, liabilities, and stockholders’ equity.
(a) Purchased equipment for $12,500 cash.
(b) Sold an additional $17,000 of stock in the firm to Fuente and Demond.
(c) Paid $1,500 owed to an office supply store for a purchase made the previous month.
(d) Purchased supplies for $4,000 on credit.
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