Chapter 1, Problem 1.22E

(1)

To determine

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners. Accounting equation is expressed as shown below:

$\text{Assets = Liabilities + Equity}$

To compute: The increase or decrease in stockholders’ equity of S Nursery for the end of 2016.

(2)

To determine

To state: Four reasons for change in equity