Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January:
Issued 10,000 shares of common stock for $15,000 cash.
Purchased land for $12,000, signing a note payable for the full amount.
Purchased office equipment for $1,200 cash.
Received cash of $14,000 for services provided to customers during the month.
Purchased $300 of office supplies on account.
Paid employees $10,000 for their first month's salaries.
How many of these transactions increased Gotebo's liabilities?
A) Four.
B) Three.
C) Two.
D) One.
Answer: C
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