Following are transactions of Gotebo Tanners,Inc. ,a new company,during the month of January: 1.Issued 10,000 shares of common stock for $15,000 cash.2.Purchased land for $12,000,signing a note payable for the full amount.3.Purchased office equipment for $1,200 cash.4.Received cash of $14,000 for services provided to customers during the month.5.Purchased $300 of office supplies on account.6.Paid employees $10,000 for their first month's salaries.How many of these transactions increased Gotebo's liabilities?
A)Four.
B)Three.
C)Two.

Question

Quizplus · Accepted Answer

Transactions 2 (purchasing land with a note payable) and 5 (purchasing office supplies on account) increased Gotebo's liabilities.

Following Are Transactions of Gotebo Tanners,Inc