Issued $150,000 of common stock for cash. Provided $98,000 of services on account. Collected $86,000 cash from accounts receivable. Loaned $11,000 to Mosby Co. on November 30, Year 1. The note had a one-year term to maturity and a 10 percent interest rate. Paid $36,000 of salaries expense for the year. Paid a $2,000 dividend to the stockholders. Recorded the accrued interest on December 31, Year 1 (see item 4). Determined that $740 of accounts receivable were uncollectible.

(1). There is an Increase in assets.

(2). THE CASH DECREASES WHEN there is INCREAMENT in Balance sheet Assets loans.

(3).When cash increases, the Balance sheet Stockholders equity increases.

Explanation:

(1). INCREASE IN ASSETS:

We acm determine if There will be an increase in the assets if we consider the Calculation below;

So, according to the question above;

=>" Loaned $11,000 to Mosby Co. on November 30, Year 1. " Therefore, the income will be:

(a 10 percent interest rate) × (amount loaned to Mosby co.) ÷ 12 =( 10/100) × 11,000 ÷ 12 = 91.67.

(2). THE CASH DECREASES WHEN there is INCREAMENT in Balance sheet Assets loans.

(3). When cash increases, the Balance sheet Stockholders equity increases.

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