Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NAOn January 1, Year 1, Premier Corporation began operations by issuing 10,000 shares of no-par stock for $22 per share. AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of ?IncomeCash Flows???????
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(I) (NA) (I) (NA) (NA) (NA) (I)
Issuing no-par common stock increases assets (cash) and increases stockholders' equity (common stock). It does not affect the income statement. The cash inflow is reported in the financing activities section of the statement of cash flows.
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