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.
Expesnes
Owners' Equity
Transaction
A
B
C
D
E
F
Revenue
NE
NE
NE
NE
I
NE
I
NE
NE
NE
NE
Assets
NE
D
D
I
I
NE
Liabilities
I
NE
I
NE
I
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.
Billed client $20,00 on account
E
Declared and paid a $12,000 dividend.
C
Recorded and paid salaries of $15,000.
B
Placed a $300 advertisement in the local newspaper. The entire
amount is due in 30 days.
F
Issued capital stock in exchange for $50,000 cash.
D
Collected $100 on account from clients
F