Indicate the best answer for each question in the space provided.
The account balances for Creative Band, Inc. as of May 31, of the current year, are listed below in alphabetical order:
On June 3, Creative Band, Inc. collected $4,000 of its accounts receivable and paid $7,000 of its accounts payable. In addition, 2,000 of additional shares of capital stock are issued for $5,600.
-Refer to the above data. On June 6, the bookkeeper for Creative Band, Inc. makes this entry:
This transaction:
A) Decreases total assets.
B) Involves the sale of equipment for $7,400.
C) Increases total assets $7,400.
D) Increases liabilities.

Question

Indicate the best answer for each question in the space provided.
The account balances for Creative Band, Inc. as of May 31, of the current year, are listed below in alphabetical order:
  On June 3, Creative Band, Inc. collected $4,000 of its accounts receivable and paid $7,000 of its accounts payable. In addition, 2,000 of additional shares of capital stock are issued for $5,600.
-Refer to the above data. On June 6, the bookkeeper for Creative Band, Inc. makes this entry:
 This transaction:
A) Decreases total assets. 
B) Involves the sale of equipment for $7,400. 
C) Increases total assets $7,400. 
D) Increases liabilities.

Quizplus · Accepted Answer

The Answer of Indicate the best answer for each question in the space provided.
The account balances for Creative Band, Inc. as of May 31, of the current year, are listed below in alphabetical order:
  On June 3, Creative Band, Inc. collected $4,000 of its accounts receivable and paid $7,000 of its accounts payable. In addition, 2,000 of additional shares of capital stock are issued for $5,600.
-Refer to the above data. On June 6, the bookkeeper for Creative Band, Inc. makes this entry:
 This transaction:
A) Decreases total assets. 
B) Involves the sale of equipment for $7,400. 
C) Increases total assets $7,400. 
D) Increases liabilities.

Indicate the Best Answer for Each Question in the Space