Textbook Problem

Exercise 2-42 Inferring Transactions from Balance Sheet Changes

Each of the following balance sheet changes is associated with a particular transaction:

1. Cash decreases by $32,000 and land increases by $22,000.
2. Cash decreases by $9,000 and retained earnings decreases by $9,000.
3. Cash increases by $100,000 and common stock increases by $100,000.
4. Cash increases by $15,000 and notes payable increases by $15,000.

Required:

CONCEPTUAL CONNECTION Describe each transaction listed above.