Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts.

(Note that "No Effect" means that the event does not effect that element of the financial statements or that the event causes an increase in that element is offset by a decrease in that same element.)

Increase = I Decrease = D No Effect = NA

Sokolov Co. borrowed $50,000 cash from Metropolitan Bank.

Assets	Liabilities	Equity	Revenues	Expenses	Net Income	Stmt of Cash Flows

Sokolov Co. paid $20,000 in cash dividends to its owners.

Assets	Liabilities	Equity	Revenues	Expenses	Net Income	Stmt of Cash Flows

Indicate how each event affects the financial statements model. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts.

Increase = I Decrease = D No Effect = NA

(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element, which is offset by a decrease in that same element.)

Sokolov Co. collected $2,000 cash from customers in partial settlement of its accounts receivable.

Assets	Liabilities	Equity	Revenues	Expenses	Net Income	Stmt of Cash Flows

Sokolov Company collected $750 from a customer for services that Sokolov agrees to perform in the future.

Assets	Liabilities	Equity	Revenues	Expenses	Net Income	Stmt of Cash Flows