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A company began the year with assets of $100,000 and liabilities of $75,000. During the year assets increased by $12,000 and liabilities decreased by $9,000.

Use the information above to answer the following question. What is the amount of the change in stockholders' equity during the year?

A) $21,000 decrease

B) $3,000 increase

C) $21,000 increase

D) $3,000 decrease

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Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

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During 2007, Sensa Corporation incurred operating expenses amounting to $100,000 of which $75,000 was paid in cash; the balance will be paid in January 2008. Transaction analysis of operating expenses for 2007, should reflect only the following a decrease stockholders' equity, $75,000; decrease assets, $75,000. b. decrease assets, $100,000; decrease stockholders' equity, $100,000. c. decrease assets, $100,000; increase liabilities, $25,000; decrease stockholders' equity, $100,000. d. decrease stockholders' equity, $100,000; decrease assets, $75,000; increase liabilities, $25,000.

At the beginning of the year, Hernandez Company had total assets of$800,000 and total liabilities of $500,000. Answer the followingquestions.

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The transactions below relate to XYZ Delivery Company. Indicatethe effect of each transaction on the accounting equation (i.e.,assets, liabilities, and equity). Enter the number corresponding toyour answer in the box provided. Answer choices may be used once,more than once, or not at all.

Question 8 options:

XYZ received $5,000 cash for services to be performed for acustomer next month.

The firm performed $3,000 of delivery services for a customerwho agreed to pay XYZ Company next month.

XYZ Company purchased office supplies for $1,900 cash.

XYZ purchased $40,000 worth of store equipment from LibbyCompany by paying $8,000
cash and agreeing to pay the remainder within six months.

XYZ purchased $7,000 of newspaper advertising and agreed to paythe newspaper in thirty days.
1.

assets increase; liabilities increase; equity no effect
2.

assets increase; liabilities no effect; equity increase
3.

assets no effect; liabilities no effect; equity no effect
4.

assets decrease; liabilities decrease; equity no effect
5.

assets no effect; liabilities increase; equity decrease
6.

assets decrease; liabilities decrease; equity decrease
7.

assets no effect; liabilities decrease; equity increase
8.

assets increase; liabilities increase; equity increase
9.

assets decrease; liabilities no effect; equity decrease

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