Classify the following items as issuance of stock, dividends, revenues, or expen
ID: 2601870 • Letter: C
Question
Classify the following items as issuance of stock, dividends, revenues, or expenses. Then indicate whether each item increases or decreases stockholders’ equity. 1. Rent Expense 2. Service Revenue 3. Dividends 4. Salaries and Wages ExpenseClassify the following items as issuance of stock, dividends, revenues, or expenses. Then indicate whether each item increases or decreases stockholders’ equity. 1. Rent Expense 2. Service Revenue 3. Dividends 4. Salaries and Wages Expense
Classify the following items as issuance of stock, dividends, revenues, or expenses. Then indicate whether each item increases or decreases stockholders’ equity. 1. Rent Expense 2. Service Revenue 3. Dividends 4. Salaries and Wages Expense
Explanation / Answer
Sr. No Items Issuance of Stock Dividends Revenue Dividends Expenses Increases or decreases in stockholder's Equity Remarks 1 Rent Expenses ----- ----- ----- ----- Expenses Decrease Rent Expenses is the expenses and it reduces the total revenue so decrease in stockholders equity 2 Service Revenue ----- ----- Revenue ----- ----- Increase Service revenue is the revenue, it increase the revenue so there is increase in stockholder's revenue 3 Dividends ----- ----- ----- Dividends ----- Decrease Dividend is the apportionement of revenue so there is decrease in the stockholder's revenue 4 Salary and Wages ----- ----- ----- ----- Expenses Decrease Salary and wages Expenses is the expenses and it reduces the total revenue so decrease in stockholders equity