e following selected events were experienced by either Cardinal Industries, Ine.

Question

e following selected events were experienced by either Cardinal Industries, Ine., a corporation, or Larry Cardinal, the major stockholder (Click the loon to view the events) State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. identfy any specific asset afflectod. ( an evert no effect on the total assets of the business choose ether personal transaction or asset accounts offset) Asset efflect Account atected or why assets are not affected Asset accounts offset Equipment a. Sold land and received a note receivable of $43,000(the land was carried or he companyý's books o $43,000 b Purchased equipment for the business for $81,000 cash e. Candinal used personal funds to purchase a pool table for his home d Purchased land for a building site for the business and signed a $98,000 No effect No effect ccounts offset roissory e to the bank e. Received-140,000 stock to a stockholder Asset effect assets are not afecied t Eamed $15,000 in revenue for services performed. The customer promises g The business paid Cardinal a cash dvidend of S4 500 h Paid $12 000 cash on accoures payable celved $37,000 cash from customers for services performed L Purchased supolies on account for $4,00 Choose from any drop-down list and then continue to the next question here to seanch 8 7 5 6 8 3

Explanation / Answer

Asset accounts Offset

Explanation - Journal entries for the above transactions

Transaction Asset effect Account effected or why assets are not affected a Sold land and received a note receivable of $43,000 No affect Asset accounts Offset b Purchased equipment for the business for $81,000 cash No affect

Asset accounts Offset

c Cardinal used in personal funds to purchase a pool table for his home No affect Personal transaction d Purchased land for a building site for the business and signed a $98,000 promissory note to the bank Increased Land e Received $140,000 cash and issued stock to a stockholders Increased Cash f Earned $15,000 in revenue for services performed. The customer promises to pay Cardinal Industries in one month Increased Accounts receivable g Cash dividend of $4,500 paid to Cardinal Decreased Cash h Paid $12,000 of cash on accounts payable Decreased Cash i Received $37,000 cash from customers for services performed No affect Asset accounts Offset j Purchased supplies on account of $4,000 Increased Supplies

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