Question

Swifty Corporation had the following selected transactions.

1. Kim Leppard invested $7,274 cash in the business in exchange for common stock.
2. Paid office rent of $1,382.
3. Performed consulting services and billed a client $6,838.
4. Declared and paid a $873 cash dividend.

Answer 1

Missing word "Indicate the effect each transaction has on the accounting equation, (Assets = Liabilities + Stockholders' Equity), using plus and minus signs."

Assets = Liabilities + Stockholders' Equity

1. Increase(+) No Effect Increase(+)

2. Decrease(-) No Effect Decrease(+)

3. Increase(+) No Effect Increase(+)

4. Decrease(-) No Effect Decrease(+)