Each of the following balance sheet changes is associated with a particular transaction: a. Cash increases by

Question:

Each of the following changes is associated with a particular transaction:
a. Cash increases by $100,000 and capital stock increases by $100,000.
b. Cash decreases by $22,000 and land increases by $22,000.
c. Cash decreases by $9,000 and retained earnings decreases by $9,000.
d. Cash increases by $15,000 and notes payable increases by $15,000.

Required:
Describe each transaction listed above.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...