Listed below are descriptions of six transactions, followed by a table listing six unique combinations of financial statement effects (I is for increase, D is for decrease, and NE is for no effect).
In the blank space to the left of each transaction description, place the appropriate letter from the table that indicates the effects of that transaction on the various elements of the financial statements.
Issued capital stock in exchange for $50,000 cash.
Billed clients $20,000 on account.
Placed a $300 advertisement in the local newspaper. The entire amount is due in 30 days.
Collected $100 on account from clients.
Recorded and paid a $12,000 dividend.
Recorded and paid salaries of$15,000.

  • CreatedApril 17, 2014
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