Loya Company Entered into the Following Transactions During March 2020

question 39

Essay

Loya Company entered into the following transactions during March 2020.
1. Purchased office equipment for $25,000 from Office Equipment, Inc. on account.
2. Paid $3,000 cash for March rent on office furniture.
3. Received $18,000 cash from customers for services billed in February.
4. Provided legal services to Miguel Construction Company for $3,500 cash.
5. Paid Western States Power Co. $2,500 cash for electric usage in March.
6. F. Loya invested an additional $32,000 in the business.
7. Paid Office Equipment, Inc. for the office equipment purchased in (1) above.
8. Incurred advertising expense for March of $1,600 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:

Interquartile Range

The difference between the 75th and 25th percentiles of a data set, measuring the spread of the middle 50% of the data.

Summary Statistics

Numeric values that summarize and provide information about your sample data, including measures like mean, median, and standard deviation.

Lower Fence

A term used in descriptive statistics and boxplot construction, referring to a value below which lies an outlier in a dataset, typically calculated as Q1 - 1.5*IQR, where Q1 is the first quartile and IQR is the interquartile range.

Box And Whisker Plot

A graphical representation of data that displays the median, quartiles, and extremes, providing a visual summary of the distribution.