AC113-Accounting-Unit 3-Assignments
Exercise 2-21 (pg.70 &71)

Describe how each transaction of Lucent Technologies Inc. affect the three elements of the Accounting Equation
Assets
Liabilities
Stock Holders Equity

a Received Cash from issuing stock Increase in stock holder equity and increase in asset of cash b Made cash sale Increase in Asset of cash c Received cash from issuance of long term debt Increase in Asset of cash and Decreased Liability by paying debt d Paid research and development expenses for the current year Paid off a liability and decreased the asset of cash e Purchased machinery and equipment for cash Increased asset for owning equipment and decreased asset of cash f Received proceeds from selling a portion of manufacturing operations for a gain on a sale Decreased land asset with the sale increased cash asset with the sale gain may also decrease equity of stock g Paid off long term debt Decreased liability and could increase stock equity because of less debt h Paid employee pension expenses for the current year Increased a liability by paying the debt and decreasing asset i Paid taxes Decreased asset of cash and decreased liability by paying of debt j Paid Officers salaries Decreased asset of cash and decreased liability by paying of debt k Paid selling expenses Decreased asset of cash and decreased liability by paying of debt l Paid dividends Decreased asset of cash and decreased liability by paying of debt and increase stockholder equity with dividend