see attachments

E2-21

Effects of transactions on accounting equation

Describe how the following transactions of Sun Microsystems, Inc., would affect the three elements of the accounting equation.

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· a. Paid research and development expenses for the current year.

· b. Purchased machinery and equipment for cash.

· c. Received cash from issuing stock.

· d. Received cash from the issuance of long-term debt.

· e. Made cash sales.

· f. Paid selling expenses.

· g. Paid employee pension expenses for the current year.

· h. Received proceeds from selling a portion of manufacturing operation for a gain on the sale.

· i. Paid officer salaries.

· j. Paid taxes.

· k. Paid off long-term debt.

· l. Paid dividends.

This was my answer sheet, need correct answers for a, g, h and j ……thank you

a. decrease in assets and decrease in liabilities

b. increase in assets and decrease in assets

c. increase assets and increase stockholder equity

d. increase assets and increase liabilities

e. increase assets and increase stockholder equity

f. decrease in assets and decrease in stockholder equity

g. decrease in assets and decrease in liabilities

h. increase assets and increase stockholder equity

i. decrease in assets and decrease stockholder equity

j. decrease in assets and decrease in liabilities

k. decrease in assets and decrease in liabilities

l. decrease in assets and decrease in stockholder equity