3 adams enterprises had the following events occur during a recent month for each ev 4352239

3.Adams Enterprises had the following events occur during a recent month. For each event, determine which of the categories in the firm's accounting system would be changed. If a category would increase, indicate this with a plus (+). If a category would decrease, indicate this with a minus (-). If a category would not change, leave that line blank. (Item “a” is completed as an example.)

NOTE: Do NOT make entries to the accounting system here. Instead, you are determining the EFFECT of a transaction on account balances.


a.$8,000 was borrowed from a bank on a note payable++

b.Inventory was sold for cash at a price above cost

c.Equipment costing $5,000 was purchased for cash

d.Services were performed for customers who paid cash

e.Inventory was purchased for cash

f.Owners contributed cash to start the company

4.Young & Company completed the following transactions during October, its first month of operations:

1. Owners invested $60,000 cash in the business.

2. $1,800 was paid for one month's office rent.

3. Equipment was purchased by signing a $8,000 note.

4. Services were performed for customers for $5,000 cash.

5. Goods were sold to customers for $8,000 cash.

6. Paid $2,000 on the note signed in transaction #3.


After these transactions, what is the total amount of:

a. Assets

b. Liabilities

c. Owners' equity

d. Net income

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