Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 28

Analyzing Transactions
Listed below are descriptions of six transactions, followed by a table listing six unique combinations of financial statement effects (I is for increase, D is for decrease, and NE is for no effect).n the blank space to the left of each transaction description, place the appropriate letter from the table that indicates the effects of that transaction the various elements of the financial statements.
1.______ Purchased machinery for $5,000, paying $1,000 cash and issuing a $4,000 note payable for the balance.
2._______Billed clients $16,000 on account.
3._______Recorded a $500 maintenance expense of which $100 was paid in cash and the remaining amount was due in 30 days.
4._______Paid an outstanding account payable of $400.
5._______Recorded monthly utilities costs of $300.he entire amount is due in 20 days..________Declared a $40,000 dividend to be distributed in 60 days