For each of the following transactions, indicate the type by entering AS for asset source transactions, AU for asset use transactions, AE for asset exchange transactions, and CE for claims exchange transactions.1) ________ Paid $2,000 in dividends to its stockholders2) ________ Recorded the accrual of $1,000 in salaries to be paid later3) ________ Issued common stock for $20,000 in cash4) ________ Earned revenue to be collected next year5) ________ Paid the salaries accrued in #2 above 6) ________ Received cash from customers in #4 above7) ________ Purchased supplies on account8) ________ Received $500 from a customer for services to be provided later

Question

What will be an ideal response?

Answer 1

1) AU 2) CE 3) AS 4) AS 5) AU 6) AE 7) AS 8) AS
1) Assets (cash) decreased, Equity (retained earnings from dividends) decreased
2) Liabilities (salaries payable) increased, Equity (retained earnings from salaries expense) decreased
3) Assets (cash) increased, Equity (common stock) increased
4) Assets (accounts receivable) increased, Equity (retained earnings from revenue) increased
5) Assets (cash) decreased, Liabilities (salaries payable) decreased 
6) Assets (cash) increased, Assets (accounts receivable) decreased
7) Assets (supplies) increased, Liabilities (accounts payable) increased 
8) Assets (cash) increased, Liabilities (unearned revenue) increased