Ram, Inc. had the following transactions during the month of April For each one,

Question

Ram, Inc. had the following transactions during the month of April For each one, indicate the change in elements of the accounting equation. Received $12,000 from stockholders in exchange for stock Paid $1,800 for rent for April. Purchased $9,800 of supplies on account. Recorded $2,250 of fees earned on account. Paid $300 to creditors on account. Purchased equipment for $25,000, paying $10,000 in cash and giving a note payable for the remainder. Paid wages of $1,650. Received $1,190 from customers on account. Recorded payment of dividends, $2,350.

Explanation / Answer

Ans A) Increase in Assets and Increase in stock holders equity, no effect on liabilities

Ans B) Decrease in Assets , Decrease in Stock holders equity, no effect on liabilities

Ans C) Increase in liabilities, Increase in Assets, no effect on stock holders equity

Ans D)Increase in Assets, Increase in Stock holders equity, no effet on liabilities

Ans E) Decrease in Assets, Decrease in Liabilities, no effect on share holders equity

Ans F) Increase in Assets, Increase in Liabilities,no effect on share holders equity

Ans G) Decrease in Assets , Decrease in Stock holders equity, no effect on liabilities

And H) No effect on Assets, No effect on Liabiities and No effect on share holders equity

Ans I) Decrease in Assets, Decrease in share holders equity, no effect on liabilities

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