Fromo x Pirate 365 me Home Man oardecueduwebappsassessment

×(@) Fromo x Pirate 365 me Home . Man oard.ecuedu/webapps/assessment/take/launchjsp? course assessment id: 498281 18course id 445464 18new attempt-1&content; ic QUESTION 15 ts fin year of operations Boston Inc. was started on January 1,2017 The company experienced the events listed below during Match each event with its efflect on the company\'s income statement Compare this question to the review problem on page 26-27 Compare to exercises 17,22 and 24 Increase Revenues, Increase Net Income B Increase Expenses. Decrease Net Income Acquired $50,00 cash from issuing common stock to the owners Received $50,000 cash for provdng decorating services to C No Efect customers Recelved $5,000 cash from renting part of the company\'s warehouse to a diferent company Paid workers $9,000 in salaries Borrowed $10.000 cash from the bank Answer for the immediate effect of borroeing Received $20,000 in cash from customers for providing consuting services that have been completad Paid $8,000 for utities and rent on headquarlers building Paid a $2.000 cash dividend to the owners . Pald S3000 of principal on the loan Noiterest was paid Cliek Save and Submit to save and subit.Ciek Save all Ansuvers to szve all ensvers Save All Answers to 8 5 6 8

Solution

1) C, issuing common stock will go to Balance sheet , not in income statement.

2) A , It is service revenue and will increase the net income

3) A , it is income of company that will also increase its net income

4) B , paying salaries is a expense and net income will decrease due to this expenses

5) C , taking a loan from bank creates a liability ,which will be shown in Balance sheet

6) A , it is a service revenue ,which will go to income statement

7) B , utilities and rent expenses are shown in income statement as expenses

8)    C , payment of dividend transaction is not shown in income statment , it is shown in Retained Earnings statement.

9) C , only interest payment on loan will be shown in Income Statement as expense, whereas payment of principal loan is deducted from total loan in Balance sheet in liability section