Indicate whether each of the following types of transactions will either (a) increase stockholders' equity or (b) decrease stockholders' equity: 1.  Issued common stock in exchange for cash.   2.  Received cash for services performed for customers.   3.  Paid business expenses.   4.  Paid dividends.

Q: For each transaction recorded in an accounting system, the basic equation * :that must be maintained…

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A:

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A:

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A: Hi student Since there are multiple questions, we will answer only first question.

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Q: Stockholders' equity

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A: Stock holders equity = equity share capital + Reserves and surplus

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is