Olive Enterprises experienced the following events during 2010. 1. Acquired cash from the issue of common stock.
Question:
Olive Enterprises experienced the following events during 2010.
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
a. 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. The first event is shown as an example.
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b. Sarah Culver audited Olive Enterprise's financial statements and provided assurances that the statements were prepared in accordance with GAAP. Sarah holds only one professional certification. Which certification to you expect Sarah holds? Explain why you chose thiscertification.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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a Olive Enterprises Accounting Equation Stockholders Equity Event ...View the full answer
