Following are transactions of ABC, a new company, during the month of January: 1. Issued 10,000 shares of common stock for $15,000 cash. - asset 2. Purchased land for $12,000, signing a note payable for the full amount. - liabilities 3. Purchased office equipment for $1,200 cash. - asset 4. Received cash of $14,000 for services provided to customers during the month. - asset 5. Purchased $300 of office supplies on account. - asset 6. Paid employees $10,000 for their first month's salaries. - asset How many of these transactions decreased ABC's total assets

2 transactions reduced ABC's total assets

Explanation:

First transaction that reduced ABC's total assets was the purchase of of equipment worth $1,200 for cash.This transaction drains cash to the tune of $1,200 since it was settled by a cash outflow of $1,200

The second transaction that negatively the business's total assets was the payment of salaries to employees to the tune of $10,000, this also was a cash outflow of $10,000 from the business .

The issue of shares increased the total assets since it was cash inflow.

The purchase of land implies an increase in asset land and an increase in liabilities notes payable.

The receipt of $14,000 cash increases total assets.

The purchase of office supplies on account did not reduce assets but increases it.

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