Following Are Transactions of Gotebo Tanners, Inc

question 57

Multiple Choice

Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January 2012: 1. Issued 10,000 shares of common stock for $15,000 cash.
2) Purchased land for $12,000, signing a note payable for the full amount.
3) Purchased office equipment for $1,200 cash.
4) Received cash of $14,000 for services provided to customers during the month.
5) Purchased $300 of office supplies on account.
6) Paid employees $10,000 for their first month's salaries.
How many of these transactions decreased Gotebo's total assets?

• A) One.
• B) Two.
• C) Three.
• D) Four.

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Definitions:

Precedent

An earlier court decision; in a common law system, judges are required to follow a decision made in a higher court in the same jurisdiction where the facts are similar.

Civil Code

A codification of laws intended to systematically cover areas of private law such as contracts, property, family, and obligations.

Equity

Refers to a body of law providing remedies that go beyond those offered by traditional common law, often aimed at fairness.

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