Learning Objective : Analyze the impact of business transactions on accounts.
The following selected events were experienced by either Quick Medical Services, Inc., a corporation, or George Quick, the major stockholder. State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected.
a. Borrowed $65,000 from the bank for use in the business.
b. Quick used personal funds to purchase a flat-screen TV for his home.
c. Sold land and received cash of $71,000 (the land was carried on the company's books at $71,000).
d. Received $16,300 cash from customers on account.
e. Made cash purchase of land for a building site for the business, $84,000.
f. Received $11,000 cash and issued stock to a stockholder.
g. Paid $8,900 cash on accounts payable.
h. Purchased medical equipment and signed a $100,000 promissory note in payment.
i. Purchased office supplies on account for $1,700.
j. The business paid Quick a cash dividend of $7,000.