Indicate the effects of the following transactions on the balance sheet equation, using the format:

\text { Transaction letter\quad\quad\quad Assets } \quad\quad=\quad \quad\text { Liabilities } \quad\quad+\quad\quad \text { Shareholders' equity }

a. Issued 20,000 shares of

\$ 0.10

par value common stock for

\$ 100,000

.
b. Issued 5,000 shares of

\$ 0.10

par value common stock in full payment for land worth

\$ 25,000

to be used as a future building site.
c. Acquired equipment costing

\$ 7,500

for a cash payment of

\$ 700

with the balance payable over the next five years.
d. Paid

\$ 1,000

for rent for the next two months.
e. Completed a consulting job and invoiced the client for

\$ 5,000

, payable in 30 days.
f. Ordered office supplies for the office, totaling

\$ 225

.
g. Purchased a three-year fire insurance policy and pays in advance

\$ 3,000

\mathrm{h}

. Received payment from the client for services rendered in (e) above.
i. Received the office supplies. The invoice indicates payment is due within 10 days.
j. Issued a check for the office supplies purchased in (i) above.

Which of the Following Is/are True Regarding the T-Account

Multiple Choice

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