Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 78

Transaction analysis—nonquantitative Indicate the effect of each of the  following transactions on total assets, total liabilities, and total owners’ equity. Use + for increase, - for decrease, and (NE) for no effect. The first transaction is provided as an illustration.

		Assets	Liabilities	Owners’ Equity
a.	Borrowed cash on a bank loan	+	+	NE
b.	Paid an account payable
c.	Sold common stock
d.	Purchased merchandise inventory on account
e.	Declared and paid dividends
f.	Collected an account receivable
g.	Sold merchandise inventory on account at a profit. .
h.	Paid operating expenses in cash
i.	Repaid principal and interest on a bank loan