Using the notations increase, decrease and no effect, indicate the effect on assets, liabilities, shareholders equity and
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Using the notations 'increase', 'decrease' and 'no effect', indicate the effect on assets, liabilities, shareholders' equity and net profit before tax of failing to record each of the following independent transactions or events:
1. A $200 000 piece of equipment purchased on credit.
2. Inventory of $30 000 purchased on account.
3. Sale of inventory (costing $30 000) on credit for $50 000.
4. A loan received from the bank for $80 000.
5. Payment of wages of $100 000 for the period.
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Related Book For
Financial Accounting An Integrated Approach
ISBN: 9780170349680
6th Edition
Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson
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