The following selected events were experienced by either Knox Eldercare Services, Inc., a corporation, or Steve Knox,

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The following selected events were experienced by either Knox Eldercare Services, Inc., a corporation, or Steve Knox, the major stockholder. State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected.
a. Sold land and received cash of $69,000 (the land was carried on the company's books at $69,000).
b. Received $15,400 cash from customers on account.
c. Made cash purchase of land for a building site for the business, $89,000.
d. Borrowed $62,000 from the bank for use in the business.
e. Knox used personal funds to purchase a flat-screen TV for his home.
f. Purchased medical equipment and signed a $90,000 promissory note in payment.
g. Purchased office supplies on account for $ 1,200.
h. Received $12,000 cash and issued stock to a stockholder.
i. Paid $400 cash on accounts payable.
j. The business paid Knox a cash dividend of $4,000.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  answer-question

Financial Accounting

ISBN: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

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