Ask Question
26 December, 15:12

Olive Enterprises experienced the following events during 2012.

1. Acquired cash from the issue of common stock.

2. Paid cash to reduce the principal on a bank note.

3. Sold land for cash at an amount equal to its cost.

4. Provided services to clients for cash.

5. Paid utilities expenses with cash.

6. Paid a cash dividend to the stockholders.

Explain how each of the events would affect the accounting equation by writing the letter I for increase, the letter D for decrease, and NA for does not affect under each of the components of the accounting equation.

+2
Answers (1)
  1. 26 December, 19:00
    0
    1. Cash - Assets (I) & Common Stock - Liabilities (I)

    2. Cash - Assets (D) & Bank Note - Liabilities (D)

    3. Land - Assets (D) & Cash - Assets (I)

    4. Services revenue - Revenue (I) & Cash - Assets (I)

    5. Cash - Assets (D) & Utilities expense-Expenses (I)

    6. Cash - Assets (D) & Retained utilities-Owner's Equity (D)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Olive Enterprises experienced the following events during 2012. 1. Acquired cash from the issue of common stock. 2. Paid cash to reduce the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers