[bettyboop254]

Explain briefly how each of the following transactions would affect a company's balance sheet. (Remember, assets must equal liabilities plus owners' aquity before and after the transaction)
A. Purchase of a new $10 million building, financed 20 percent with cash and 80 percent with a bank loan.
B. Purchase of a new building for $10 million cash
C. A $10,000 payment to trade creditors
D. Sale of $100,000 of merchandise for cash
E. Sale of $100,000 of merchandise for credit

[pready]

You need to analyze each transaction to figure out what the journal entry will be, which will help you understand how each transaction will affect the balance sheet.

So for the first transaction your journal entry will be:
Debit Building for 10 million
Credit Cash for 2 million
Credit Notes Payable for 8 million

Now you can solve your question; you will increase an Asset (Building) by 10 million, decrease an Asset (Cash) by 2 million, and increase Liabilities (Notes Payable) by 8 million.