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:

Chequing Account

A bank account from which money can be quickly withdrawn using checks, debit cards, or electronic methods.

Misrepresentation

A false statement or lie that deceives, misleads, or misinforms someone, often leading to contractual agreements based on incorrect information.

Contract Voidable

A legal agreement that can be legally declared invalid or unenforceable by one or more of the parties involved due to specific reasons, such as misrepresentation or duress.

Nondisclosure

An obligation not to reveal certain information to unauthorized individuals or parties.