1. Harry potter invested a capital of 15,000 into his business. 2. Acquired an equipment for 5,000 cash for business use. Choices: a.) An increase in assets and a decrease in assets. b.) An increase in assets and an increase in stockholders equity. c.) An increase in assets and an increase in liabilities. d.) A decrease in assets and a decrease in stockholders equity. e.) A decrease in assets and a decrease in liabilities. f.) An increase in liabilities and a decrease in stockholders equity. g.) An increase in stockholders equity and a decrease in liabil

1. Harry potter invested a capital of 15,000 into his business. 2. Acquired an equipment for 5,000 cash for business use. Choices: a.) An increase in assets and a decrease in assets. b.) An increase in assets and an increase in stockholders equity. c.) An increase in assets and an increase in liabilities. d.) A decrease in assets and a decrease in stockholders equity. e.) A decrease in assets and a decrease in liabilities. f.) An increase in liabilities and a decrease in stockholders equity. g.) An increase in stockholders equity and a decrease in liabil

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 5MCQ

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Ollie Company experienced the following events during its first-year operations: 1. Acquired $72,000 cash from the issue of common stock. 2. Borrowed $26,000 from the First City Bank. 3. Earned $59,000 of cash revenue. 4. Incurred $43,000 of cash expenses. 5. Paid a $7,000 cash dividend. 6. Paid $43,000 to purchase land. Required: a. Identify the events that will affect the income statement. Note: Select all that apply. Event #1 Event #2 Event #3 ✓ Event #4 Event #5 Event #6 b. Prepare an income statement that shows the results of Year 1 operations. OLLIE COMPANY Income Statement For the Year Ended December 31, Year 1 $ 0
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