Loya Company Entered into the Following Transactions During March 2016

question 23

Essay

Loya Company entered into the following transactions during March 2016.
1. Purchased office equipment for $25000 from Office Equipment Inc. on account.
2. Paid $3000 cash for March rent on office furniture.
3. Received $18000 cash from customers for services billed in February.
4. Provided legal services to Miguel Construction Company for $3500 cash.
5. Paid Western States Power Co. $2500 cash for electric usage in March.
6. F. Loya invested an additional $32000 in the business.
7. Paid Office Equipment Inc. for the office equipment purchased in (1) above.
8. Incurred advertising expense for March of $1600 on account.
Instructions
Indicate with the appropriate letter whether each of the transactions above results in:
(a) an increase in assets and a decrease in assets.
(b) an increase in assets and an increase in owner's equity.
(c) an increase in assets and an increase in liabilities.
(d) a decrease in assets and a decrease in owner's equity.
(e) a decrease in assets and a decrease in liabilities.
(f) an increase in liabilities and a decrease in owner's equity.
(g) an increase in owner's equity and a decrease in liabilities.

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Definitions:

Abnormality

A deviation from the norm or average, often indicating the presence of a condition or disorder.

Emotional Discomfort

Feelings of unease or distress stemming from a variety of sources, including psychological, social, or situational factors.

Diagnostic

Related to the identification of the nature or cause of a certain phenomenon, typically involving systematic analysis of symptoms or conditions.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a standard classification of mental disorders used by mental health professionals.