Determine the Effect of the Following Transactions on the Financial

Essay

Determine the effect of the following transactions on the financial statement components identified. Code your answers as follows:
A: If the transaction results in an increase in the financial statement component.
B: If the transaction results in a decrease in the financial statement component.
C. If the transaction does not affect the financial statement component.
Transaction 1: The adjusting journal entry to record depreciation expense was prepared.
Net income_____
Total assets_____
Stockholders' equity_____
Transaction 2: The adjusting journal entry to record patent amortization expense was prepared.
Net income_____
Total assets_____
Stockholders' equity_____
Transaction 3: A depreciable asset was sold for a gain.
Net income_____
Total assets_____
Stockholders' equity_____
Transaction 4: The adjusting journal entry to record an impairment loss was prepared.
Net income_____
Total assets_____
Stockholders' equity_____