Answer:
Transaction #6 decreases Gotebo's total assets.
Explanation:
Let's assess each transaction:
1. Issued 10,000 shares of common stock for $15,000 cash: this transaction increases cash (Asset) and owners' equity.
2. Purchased land for $12,000, signing a note payable for the full amount: This transaction increases land, which is an asset account and increases note payable, which is a liability account.
3. Purchased office equipment for $1,200 cash: This transaction increases equipment (Asset) and decreases cash (Asset). Therefore, no effect on the total assets.
4. Received cash of $14,000 for services provided to customers during the month: This transaction increases the cash (Asset) and increases owners' equity (Revenue side).
5. Purchased $300 of office supplies on account: It increases supplies (Asset) and accounts payable (Liability).
6. Paid employees $10,000 for their first month's salaries: This transaction decreases cash (Asset) and increases expenses, which decreases owners' equity.
Therefore, only transaction #6 decreased Gotebo's total assets by $10,000.
