Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 2.6E
Effects of transactions on
For Target Corporation (TGT), indicate whether the following transactions would (1) increase, (2) decrease, or (3) have no effect on stockholders’ equity.
a. Borrowed money front the bank.
b. Paid creditors.
c. Made cash sales to customers.
d. Purchased store equipment.
e. Paid dividends.
f. Paid store rent.
g. Paid interest expense.
h. Sold store equipment at a gain.
i. Received interest revenue.
j. Paid taxes.
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Which of the following transactions causes an increase in stockholders’ equity? a. Pay dividends to stockholders. b. Obtain cash by borrowing from a local bank. c. Provide services to customers on account. d. Purchase advertising on a local radio station.
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1. ____________
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Chapter 2 Solutions
Survey of Accounting (Accounting I)
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