ACC 212 CHAPTER 3 PRACTICE PROBLEMS OVERVIEW QUESTIONS WITH COMPLETE ANSWERS.

ACC 212 CHAPTER 3 PRACTICE
PROBLEMS OVERVIEW QUESTIONS
WITH COMPLETE ANSWERS

Issue common stock in exchange for cash - Answer Increase in Assets, No effect on
Liabilities, Increase in Stockholders' Equity

Purchase inventory on account - Answer Increase in Assets, Increase in Liabilities, No
effect on Stockholders' Equity

Provide services to customers on account - Answer Increase in Assets, No effect on
Liabilities, Increase in Stockholders' Equity

Borrow money from the bank to purchase a building - Answer Increase in Assets,
Increase in Liabilities, No effect on Stockholders' Equity

Pay for a year of health insurance for employees - Answer No effect on Assets, No
effect on Liabilities, No effect on Stockholders' Equity

Provide services to customers for cash - Answer Increase in Assets, No effect on
Liabilities, Increase in Stockholders' Equity

Repay loan from the bank - Answer Decrease in Assets, Decrease in Liabilities, No
effect on Stockholders' Equity

Receive cash from customers in (3) above - Answer No effect on Assets, No effect on
Liabilities, No effect on Stockholders' Equity

Pay for inventory purchased in (2) above - Answer Decrease in Assets, Decrease in
Liabilities, No effect on Stockholders' Equity

Electrician estimated cost - Answer $1,500 for repair services

Payment at the time of service (Laker Bakery) - Answer September 4: cash down,
expense up (SE Down)