Answer:
Eldercare Services, Inc.
Analysis of the impact of business transactions on accounts:
Stating whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business:
a. Cash decreased by $400.
b. Cash decreased by $89,000 and Land increased by $89,000.
c. Cash increased by $69,000 and Land decreased by $69,000.
d. Cash increased by $15,400 and Accounts Receivable decreased by $15,400.
e. Equipment increased by $90,000.
f. Not a business transaction (no effect on the total assets of the business).
g. Cash decreased by $4,000.
h. Office Supplies increased by $1,200.
i. Cash increased by $62,000.
j. Cash increased by $12,000.
Explanation:
Eldercare Services, Inc.'s assets are impacted by the above transactions except transaction "f" which concerns the major stockholder, Tony Smith. The impact has to do with either an increase or a decrease in the total assets. The specific asset affected has been stated in each transaction with the corresponding amount involved.
