Question

Score: 0 of 2 pts 3 of 4 (2 complete) HW Score: 50%, 4 of 8 pt E Question Help S1-14 (similar to) The analysis of Circuit Electronics, Inc.'s first eight transactions follows. The business only sold stock once and paid no dividends. (Click the icon to view the transactions) Read the requirements Requirement 1. Label each of the transactions with the corresponding letter of the description that best fitsit (Click the icon to view the descriptions.) Assets Llabilities Stockholders' equity Retained Accounts receivable Accounts payable Note payable Common stock + - Equipment + + earnings Description Cash • $30,000 1. + $30,000 Choose from any drop-down list and then click Check Answer 8 o remaining parts Clear All Check Answer

Answer 1

assets

=

Liabilities

+

Stockholders’ equity

Cash

+

Accounts receivable

+ equipment

Accounts payable

+

Notes payable

+

Common stock

+

Retained earnings

Description

1

+30000

+30000

g.

2

-1500

+1500

e.

3

+1200

+1200

h.

4

+1000

+1000

a.

5

-1400

-1400

d.

6

+1900

+1900

c.

7

+900

-900

b.

8

+300

-300

f.

For services provided on account, accounts receivable is affected

Receiving cash from customer decreases accounts receivable and increases cash

Receiving cash revenue increases cash and retained earnings (because due to it net income will increase)

Paying cash for operating expenses decreases both cash and retained earnings

Paying cash for equipment increases equipment but will decrease cash

Received utility bill increases accounts payable and decreases retained earnings

Selling stock increases cash and common stock

Using bank loan for purchasing equipment increases equipment and notes payable both