Olive Enterprises experienced the following events during Year 3: 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. Required Indicate how each of the above events would affect the accounting equation by selecting "Increase" or elements of the accounting equation. Leave blank for no effect. If an event increases one account and equally within the same component, select "Both". The first event is shown as an example. Note: Not all cells will require input. Event Number 1. 2. 3. 4. 5. 6. Assets Increase Increase Decrease Both = = OLIVE ENTERPRISES Accounting Equation Liabilities + + + + + ++ Stockholders' Equity Common Stock Increase + + + + + + Retained Earnings

Olive Enterprises experienced the following events during Year 3: 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. Required Indicate how each of the above events would affect the accounting equation by selecting "Increase" or elements of the accounting equation. Leave blank for no effect. If an event increases one account and equally within the same component, select "Both". The first event is shown as an example. Note: Not all cells will require input. Event Number 1. 2. 3. 4. 5. 6. Assets Increase Increase Decrease Both = = OLIVE ENTERPRISES Accounting Equation Liabilities + + + + + ++ Stockholders' Equity Common Stock Increase + + + + + + Retained Earnings

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 5MCQ

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