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Reno Company Experienced the Following Events During the Year

Question 14

Essay

Reno Company experienced the following events during the year:
1.issued common stock for cash
2.purchased land by paying cash
3.borrowed cash
4.provided services to customers for cash
5.repaid part of the cash borrowed in event 3
6.paid operating expenses with cash
7.paid a dividend to stockholders
Required:
Indicate how each of these events affects the accounting equation by writing the letter I for increase,the letter D for decrease,and NA for no effect under each of the components of the accounting equation.The first is done for you as an example. Reno Company experienced the following events during the year: 1.issued common stock for cash 2.purchased land by paying cash 3.borrowed cash 4.provided services to customers for cash 5.repaid part of the cash borrowed in event 3 6.paid operating expenses with cash 7.paid a dividend to stockholders Required: Indicate how each of these events affects the accounting equation by writing the letter I for increase,the letter D for decrease,and NA for no effect under each of the components of the accounting equation.The first is done for you as an example.

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