Texts: The table below describes six unique combinations of financial statement effects. (I is for increase, D is for decrease, and NE is for no effect.)
Transaction Revenue Expenses Assets Liabilities
A NE NE NE NE
B NE D NE NE
C NE NE D NE
D NE D NE NE
E I NE I NE NE
Matching the appropriate letter from the table that indicates the transaction's effect on the financial statements' various elements.
Transaction: Placed a $300 advertisement in the local newspaper. The entire amount is due in 30 days.
Owners' Equity
D D
1 NE
Billed client $20.00 on account
Declared and paid a $12,000 dividend
Recorded and paid salaries of $15,000
Placed a $300 advertisement in the local newspaper. The entire amount is due in 30 days
Issued capital stock in exchange for $50,000 cash.
D
Collected $100 on account from clients
F