Accounting Solution 1.2 (Introduction to Accounting)
Look at the table below for the answers:
| Event |
Type of Event |
Effect on Total |
Explanations |
| a |
Asset Source |
Increase |
Increase in assets (Cash) and equity (Contributed Capital) |
| b |
Asset Source |
Increase |
Increase in assets (Cash) and liabilities (Accounts Payable) |
| c |
Asset Exchange |
Unchanged |
Increase in one asset (Supplies) and decrease (Cash) in another |
| d |
n/a |
n/a |
Making plans does not affect any asset |
| e |
Asset Exchange |
Unchanged |
Simultaneous increase in one asset (Computer) and decrease (Car) in another |
| f |
Asset Use |
Decrease |
Decrease in assets (Supplies) and equity (Retained Earnings) |
| g |
n/a |
n/a |
Making plans does not change assets |
| h |
Asset Source |
Increase |
Increase in assets (Cash) and equity (Retained Earnings) |
| i |
Asset Use |
Decrease |
Decrease in assets (Cash) and equity (Retained Earnings) |
| j |
Asset Use |
Decrease |
Decrease in assets (Cash) and liabilities (Accounts Payable) |
| k |
Asset Use |
Decrease |
Decrease in assets (Cash) and equity (Retained Earnings) |
| l |
Asset Exchange |
Unchanged |
Simultaneous increase in one asset (Money Market Account) and decrease in another (Checking Account) |
| m |
Asset Exchange |
Unchanged |
Increase (Cash) and decrease (Land) in assets |
| n |
Asset Use |
Decrease |
Decrease in assets (Cash) and equity (Retained Earnings) |
| o |
n/a |
n/a |
Receiving such information does not change assets |
Location