Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 53

Determining the Accounting Equation Effects of Transactions
Papa John's International began in the back of a tavern in Jeffersonville, Indiana, and has since become one of the largest pizza companies in America. Listed here are transactions that typically occur each year. Complete the following table, indicating the sign (+ for increase, for decrease, and NE for no effect) and amount of the effect of each transaction. Provide an account name for any revenue or expense transactions included in stockholders' equity. Consider each item independently.
a. Repaid a long-term note payable of $80,000. (Interest was paid separately.)
b. Paid cash to purchase equipment costing $120,000.
c. Purchased additional equipment costing $20,000 by issuing a long-term note payable.
d. Recorded service revenues on account of $30,000.