[nikkster12]

If a company paid $280 cash for a newspaper ad would that company's assets, liabilities, owners' equity go up or down?

If a company collected $600 of the money it was owed due to the services they provided earlier would that companys assets, liabilities, owners' equity go up or down?

If a company paid off $300 of its supplies it spent $700 on an account what would happen to the assets, liabilites, and owners' equity?

If that company paid its utility bill in the amount of $400 cash what would happen to its assets, liabilities, and owners' equity?

If that company paid a dividend to its investors in the amount of $500 cash what would happen to their assets, liabilities, and owners' equity?

If that company paid off half of its bank note of $8,000 y giving the bank $4,000 of common stock what would then happen to their assets, liabilities, and owners' equity?

[Curlyben]

What do YOU think ?
While we're happy to HELP we won't do all the work for you.
Show us what you have done and where you are having problems..

[nikkster12]

I think if a company pays for a newspaper ad in cash then their assets would go down since they spent the money and their liabilities would also go up because they just paid a newspaper company. I am just confused because since they paid with cash would it not go up or down?

I think if a company collected $600 of the money it was owed due to services then that would be an increase in assets and owners' equity.

I think if the company paid off $300 of the $700 they paid for supplies then it would be an increase in owners' equity.

I think if the comanpy paid its utility bill in the amount of $400 cash it would be a decrease in assets.

I think if the company paid a dividend to its investors in the amount of $500 cash it would be a decrease in assets and an increase in liability.

I think if the company paid off half its bank note by giving back $4,000 of common stock it would be an increase in assets and owners' equity.

[nikkster12]

I am confused if you pay with cash as opposed to on an account how that changes the increases and decreases for the assets, owners' equity, and liability.

[pready]

You have to analyze the transaction and figure out what accounts are affected. You paid cash for an ad, which means your accounts are cash and an expense account.

Now that you know what acocunts are affected you need to figure out how they affect assets, liabilities, and equity. Cash is an asset and an expense account affects net income, which flows through to equity. Cash was paid means a decrease to assets. Expenses decreases net income, which in turn will decrease Equity. Liabilities are not affected because you did not create a payable or make a payment on a payable.