Explain briefly how each of the following transactions would affect a company’s balance sheet. Remember, assets...

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Finance

Explain briefly how each of the following transactions wouldaffect a company’s balance sheet. Remember, assets must equalliabilities plus owners’ equity before and after thetransaction.
a) Sale of used equipment with a book value of $300,000 for$500,000 cash.
b) Purchase of a new $80 million building, financed 40 percentwith cash and 60 percent with a bank loan.
c) Purchase of a new building for $60 million cash.
d) A $40,000 payment to trade creditors.
e) A firm’s repurchase of 10,000 shares of its own stock at aprice of $24 per share.
f) Sale of merchandise for $80,000 in cash.
g) Sale of merchandise for $120,000 on credit.
h) Dividend payment to shareholders of $50,000

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a cash db 500000 Increase in assets by 500000 Equipment cr 300000 Decrease in Assets by 300000 Gain on sale of assets cr 200000 Increase in owner equity by 200000 b buiding db 80 See Answer

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Explain briefly how each of the following transactions wouldaffect a company’s balance sheet. Remember, assets must equalliabilities plus owners’ equity before and after thetransaction.a) Sale of used equipment with a book value of $300,000 for$500,000 cash.b) Purchase of a new $80 million building, financed 40 percentwith cash and 60 percent with a bank loan.c) Purchase of a new building for $60 million cash.d) A $40,000 payment to trade creditors.e) A firm’s repurchase of 10,000 shares of its own stock at aprice of $24 per share.f) Sale of merchandise for $80,000 in cash.g) Sale of merchandise for $120,000 on credit.h) Dividend payment to shareholders of $50,000