Indicate the effects of the following business transactions on the accounting equation for Shane’s Roasted Peanuts, a supplier of snack foods. Transaction (a) is answered as a guide.
a. Shane’s Roasted Peanuts received cash from issuance of common stock to stockholders.
Answer: Increase asset (Cash); Increase equity (Common Stock)
b. Cash purchase of land for a building site.
c. Paid cash on accounts payable.
d. Purchased equipment; signed a note payable.
e. Performed service for a customer on account.
f. Employees worked for the week but will be paid next Tuesday.
g. Received cash from a customer on accounts receivable.
h. Borrowed money from the bank.
i. Cash dividends paid to stockholders.
j. Incurred utilities expense on account.