1. Which of the following transactions would not affect stockholders’ equity?
A. recording cost of goods sold
B. recording a cash sale
C. recording a sale on account
D. recording rent expense
E. purchasing supplies for cash
2. The following amounts were reported for Pacific Corporation at the end of their first year of operations: contributed capital $100,000; sales revenue $400,000; total assets $300,000; $20,000 dividends declared; and total liabilities $160,000. What are total expenses for Pacific Corp.’s first year of operations?
A. $400,000.
B. $380,000.
C. $340,000.
D. $60,000.