Determine Whether Each of the Following Events Are Asset Source

question 55

Essay

Determine whether each of the following events are asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE)transactions.
________1)Borrowed $6,000 from creditors________2)Issued common stock to investors for $8,000 cash________3)Paid one year's rent in advance________4)Provided services to customers and collected $35,000 cash________5)Recognized depreciation expense________6)Received $3,000 of revenue in advance________7)Provided services to customers on account, $12,000________8)Collected $2,000 from customers in partial settlement of accounts receivable________9)Recognized accrued salary expense of $2,000________10)Adjusted the records for supplies used of $800

---

Definitions:

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with production or consumption of goods and services.

Corporate Jet

A private aircraft owned or leased by a company for the transportation of its executives, employees, or clients.

Automobile Manufacturer

A company that engages in the design, production, marketing, and selling of motor vehicles.

Market Prices

The prevailing rates at which goods and services are traded in the market, determined by supply and demand.