For Each of the Following Transactions, Indicate the Type by Entering

question 102

Essay

For each of the following transactions, indicate the type by entering AS for asset source transactions, AU for asset use transactions, AE for asset exchange transactions, and CE for claims exchange transactions.Paid $2,000 in dividends to its stockholders.Recorded the accrual of $1,000 in salaries to be paid later.Issued common stock for $20,000 in cash.Earned revenue to be collected next year.Paid the salaries accrued in number 2 above.Received cash from customers in number 4 above.Purchased supplies on account.Received $500 from a customer for services to be provided later.

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Definitions:

Surplus

The condition where quantity supplied exceeds quantity demanded, often leading to a decrease in prices.

Price Ceiling

A legally established maximum price that can be charged for a product or service, often set by government to prevent prices from reaching too high levels.

Price Floor

A government-set minimum price at which a product can be sold, aimed to prevent the price from falling too low.

Shortage

A market condition where the quantity demanded of a good exceeds the quantity supplied at the current price, leading to upward pressure on price.