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Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity....

Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity.

1. Buy $15,000 worth of manufacturing supplies on credit
2. Purchase equipment for $48,000 in cash
3. Receive payment of $13,000 owed by a customer
4. Issue $70,000 in stock

What is the net change in Total Liabilities?

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Answer #1
Asset Liabilities Equity
Supplies on credit Incresae by 15000 Increase by 15000 No change
Purchase equipment Increase equipment by $48000 and reduction in cash by $48000 No change No change
Payment received Increase cash by 13000 and AR reduced by 13000 No change No change
Issue $70,000 in stock Cash increase by 70000 equity increase by 70000
Net change Increase by 85000 Increase by 15000 Increase by 70000
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