Answer:
c. Two
Explanation:
The transactions are shown below:
1. Issued common stock for cash - The common stock is issued for cash which increases the cash balance. The journal entry would be
Cash A/c Dr XXXXX
To Common stock A/c XXXXX
(Being common stock is issued for cash)
Hence, it increases the total assets
2. Purchased equipment by signing a note payable - The equipment is purchase which increases the total assets. The journal entry would be
Equipment A/c Dr XXXXX
To Note payable XXXXX
(Being equipment is purchased)
3. Paid rent for the current month - The rent is paid, so the journal entry would be
Rent expense A/c Dr XXXXX
To Cash or Bank A/c XXXXX
(Being rent is paid)
It decreases the cash or bank balance but it does not impact the total assets
4. Collected cash from customers on account.
In this transaction, the cash balance is increased and debtors balance is decreased through which total assets remain unchanged
