Question

Save Homework: Homework - Chapter 01 Score: 1.67 of 2 pts < 2 of 4 (2 complete) 1 S1-12 (book/static) ► HW Score: 45.83%, 3.67 of 8 pts Question Help Action Powersports, Inc., a corporation, sells and services personal watercraft. The business experienced the following events. State whether each event (a) increased, (b) decreased, or (c) had no effect on the total assets of the business, and identify the asset(s) involved in each transaction (Click the icon to view the events.) For each transaction select the effect on total assets and the asset account(s) affected. 1. Sold additional stock to stockholders Effect on total assets Adlet accounts) affected orrect Choose from any drop-down list and then click Check Answer A parts o remaining Clear All Check Answer

Answer 1

solution Transaction Effect on Total Assets Increased Total Assets Asset account is) effected. :: Gash Cash and Land cash NO effect on Total Assets - Decreased Total Assets Increased Total Assets machinery and Equipment Increased Total Assets Accounts Receivable Decreased Total Assets Cash No effect on Total Assets cash and Accounts Receivable NO effect on Total Assets - Cash and Land Increased Total Assets Cash

Explanation D Stock sold, therefore cash receives and hence Total - Assets will increase 3) Land comes in and cash goes out therefore no effect - on Total Assets. 3) paid cash on accounts payable, that means Eash goes. - out and hence Total Assets will decrease. 4) Purchased machinery and equipment, that means Machinery and equipment comes in, hence Total Assets increase 5) services performed on account, that means accounts Receivable will arise and hence Total Assets Increase. 6) paid cash, means Cash goes out and Total Assets will decease. 8) sold Land and receives cash, that means Land goes out and cash comes in, therefore no effect on Total Assels. To received cash from a customer on account, means Cash, come in and Accounts payable goes out so no effect on tal asses. a) cash comes in and hence Total Assets will increase.

Hit the LIKE Button.