Determining Financial Statement Effects of Sales and Cost of Goods Sold and Issuance of Par Value Stock

Using the following categories, indicate the effects of the following transactions. Use + for increase and − for decrease and indicate the accounts affected and the amounts.

a. Sales on account were $800 and related cost of goods sold was $350.

b. Issued 5,000 shares of $1 par value stock for $80,000 cash.

____ Event_­­­­__            ___ Assets___   =   Liabilities ___ +          ___ Stockholders’ Equity

(a)

(b)