Problem
Suppose a company performs the following activities within a year. For each activity, perform transaction analysis and indicate the account, amount, and direction of the effect on the account equation. Use the following headings:
Assets = Liabilities + Stockholders' Equity
The activities are shown below.
(a) Purchased new equipment costing $20,000, paying $14,000 in cash and signing a note for the rest
(b) Declared $11,000 in dividends to be paid the following year
(c) Sold $2,312 in short-term investments for cash
(d) Investors sold their own stock to other investors on the stock exchange for $121,000
(e) Issued $1,000 of additional common stock shares, and received cash from investors