Allendorf Company used $30,000 in cash to repay a portion of its bank loan (see PE 3-1). For simplicity, assume that there is no interest on the loan.
a. List the accounts impacted by the transaction.
b. For each account, indicate whether the transaction increased or decreased the account.
c. For each account, indicate how much the transaction increased or decreased the account.
d. Compute the impact of the transaction on total assets, total liabilities, and total owners’ equity.