Indicate How Each Event Affects the Elements of Financial Statements

Essay

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.Use only one letter for each element.You do not need to enter amounts.

-Jack Grimes,who had held 12% of Preston Company's outstanding common stock,agreed to purchase another 8% of Preston Company's outstanding common stock from Todd Barbour,another major stockholder of Preston's.Indicate the effect of this event on Preston's financial statements.