Essay
For each of the following transactions,indicate the type by entering "AS" for asset source transaction,"AU" for asset use transaction,"AE" for asset exchange transaction,and "CE" for claims exchange transaction.
1)____Paid $10,000 for a plot of land.
2)____Recorded the accrual of $1,000 in salaries to be paid the following week.
3)____Issued common stock for $20,000 in cash.
4)____Incurred operating expense on account.
5)____Paid off its accounts payable.
6)____Earned revenue to be collected at a future date.
7)____Paid $2,000 in dividends to its stockholders.
8)____Received cash from customers in #6 above.
9)____Paid the salaries accrued in #2 above.
10)___Borrowed money from a local bank.
Correct Answer:

Verified
1)AE 2)CE 3)AS 4)CE ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q92: For which of the following would net
Q93: Addison Company experienced an accounting event that
Q94: When is revenue recognized under accrual accounting?
Q95: Rushmore Company provided services for $45,000 cash
Q96: Describe the difference between temporary and permanent
Q98: Revenue on account amounted to $9,000.Cash collections
Q99: Which of the following transactions does not
Q100: Grant Hylton started a consulting business,Grant Consulting,on
Q101: After closing,all income statement accounts have non-zero
Q102: The year-end adjustment to recognize one month's