Question

Lincoln Corporation was involved in the following transactions during the current year:
a. Lincoln borrowed cash from the local bank on a note payable.
b. Lincoln purchased operating assets on credit.
c. Lincoln paid dividends in cash.
d. Lincoln purchased supplies inventory on credit.
e. Lincoln used a portion of the supplies purchased in transaction d.
f. Lincoln provided services in exchange for cash from the customer.
g. A customer received services from Lincoln on credit.
h. The owners invested cash in the business in exchange for common stock.
i. The payable from transaction d was paid in full.
j. The receivable from transaction g was collected in full.
k. Lincoln paid wages in cash.
Required:
Prepare a table like the one shown below and indicate the effect on assets, liabilities, and stockholders’ equity. Be sure to enter debits and credits in the appropriate columns for each of the transactions. Transaction a is entered as an example:


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  • CreatedSeptember 22, 2015
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