Question: See attachment looking a response to the three question asked Describe a transaction that would: a) Increase both an asset and capital stock. b) Increase

See attachment looking a response to the three question asked

See attachment looking a response to the three question asked Describe a

Describe a transaction that would: a) Increase both an asset and capital stock. b) Increase both an asset and a liability. c) Increase one asset and decrease another asset. d) Decrease both a liability and an asset. e) Increase both an asset and retained earnings. f) Decrease both an asset and retained earnings. Please, use different examples than your peers. My response: A)In order to increase assest and capital one option would be to issue common stock for building purchase. B)In order to increase both assest and liabilities one option would be to purchase goods on credit. C)In order to increase one asset and decrease another asset would be to collect cash from receivables, D)In order to decrease both liability and an asset would be to have the full repayment of long term debt with cash. E) In order to increase both asset and retained earnings would be to Fully Depreciated Equipment sold for cash. F)In order to decrease both an asset and retained earnings would be to cash dividends paid. 1.If you sell at book value then there will be no change to Total Assets. 2.If you sell at a gain or a loss Total Assets will change as will the value of the equity in the company. 3.Does selling a fully depreciated equipment will increase directly or indirectly the retained earnings? Please explain it

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!