RequiredIndicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders' equity, (4) bookvalue per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1 (Indicate the effect ofeach transaction by selecting "+" for increase, "-"for decrease, and leave the cell blank if there is no effect.).a. Collected account receivable.b. Wrote off account receivable.c. Converted a short-term note payable to a long-term note payable.d. Purchased inventory on account.e. Declared cash dividendf. Sold merchandise on account at a profit.g. Issued stock dividendh. Paid account payable.i. Sold building at a loss.RetainedValue EarningsCurrent Working Stockholders BookRatio Capital Equity

Identifying the effect of above transactions:

Answered: Required Indicate the effect of each of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 28MC: What is the impact on the accounting equation when stock is issued, in exchange for assets? A. both...

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