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. Use only one letter for each element. You do not need to enter amounts.Increase = IDecrease = DNo Effect = NThe Premier Corporation began operations on January 1, Year 1 by issuing 10,000 shares of no-par stock for $22 per share. Indicate the effects of this transaction on the financial statements.AssetsLiabilitiesEquityRevenuesExpensesNetIncomeCash Flow? ?????
What will be an ideal response?
(I) (N) (I) (N) (N) (N) (I)
Issuing no-par common stock increases assets (cash) and increases equity (common stock). It does not affect the income statement. The cash inflow is reported as a financing activity on the statement of cash flows.
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