For the items listed below, indicate how the item affects equity (increase, decrease, or no impact).

Item	Increase? Decrease? or No Impact?
Revenues
Gains
Losses
Drawings
Investments

For each independent situation below, calculate the missing values.

$$\begin{array}{c} \textbf{Revenues}&{-}&\textbf{Expenses}&{+}&\textbf{Gains}&{-}&\textbf{Losses}&{=}&\textbf{Net Income/(Loss)}\\[3pt] \text{\$\hspace{10pt}1,250}&&\text{\$\hspace{10pt}1,100}&&\text{\$\hspace{12pt}125}&&\text{\$\hspace{13pt}75}&&\text{?}\\ \text{?}&&\text{\hspace{5pt}100,755}&&\text{\hspace{27pt}0}&&\text{\hspace{5pt}1,550}&&\text{\$\hspace{10pt}(485)}\\ \text{\hspace{10pt}75,560}&&\text{\hspace{10pt}68,600}&&\text{?}&&\text{\hspace{5pt}1,675}&&\text{\hspace{10pt}6,485}\\ \text{\hspace{10pt}26,390}&&\text{?}&&\text{\hspace{17pt}320}&&\text{\hspace{12pt}600}&&\text{\hspace{15pt}(990)}\\ \text{\hspace{5pt}872,300}&&\text{\hspace{5pt}856,995}&&\text{\hspace{5pt}11,000}&&\text{?}&&\text{\hspace{5pt}26,305}\\ \end{array}$$

Olivia’s Apple Orchard had the following transactions during the month of September, the first month in business.

$$\begin{array}{lc} &&&&&&\textbf{Owner's}\\ \textbf{Transaction}&\textbf{Amount}&\textbf{Asset}&{-}&\textbf{Liability}&{=}&\textbf{Equity}\\[5pt] \text{Amount owed for land purchase}&\text{\$\hspace{1pt}50,000}&\text{\$\hspace{1pt}50,000}&&\text{\$\hspace{1pt}50,000}&&\text{\$\hspace{1pt}0}\\ \text{Apple sales: cash}&\text{\hspace{10pt}3,000}&\text{?}&&\text{?}&&\text{?}\\ \text{Apple sales: credit}&\text{\hspace{10pt}6,000}&\text{?}&&\text{?}&&\text{?}\\ \text{Collections of credit sales}&\text{\hspace{10pt}4,000}&\text{?}&&\text{?}&&\text{?}\\ \text{Cash purchase of equipment}&\text{\hspace{5pt}10,000}&\text{?}&&\text{?}&&\text{?}\\ \text{Owner investments}&\text{\hspace{5pt}25,000}&\text{?}&&\text{?}&&\text{?}\\ \text{Wages expenses paid}&\text{\hspace{10pt}6,000}&\text{?}&&\text{?}&&\text{?}\\ \text{Fuel expenses paid}&\text{\hspace{17pt}400}&\text{?}&&\text{?}&&\text{?}\\ \text{Amount owed for utility expense}&\text{\hspace{10pt}1,000}&\text{?}&&\text{?}&&\text{?}\\ \text{Current totals}&&\text{\$\hspace{1pt}50,000}&&\text{\$\hspace{1pt}50,000}&&\text{\$\hspace{1pt}0}\\ \end{array}$$

Complete the chart to determine the ending balances. As an example, the first transaction has been completed. Note: Negative amounts should be indicated with minus signs (–) and unaffected should be noted as $0.

(Hints: 1. each transaction will involve two financial statement elements; 2. the net impact of the transaction may be$0.)

Indicate what impact (+ for increase; – for decrease) the following transactions would have on the accounting equation, Assets = Liabilities + Equity.

Indicate whether each of the following transactions increases (+), decreases (-), or has no effect (NE) on total assets, total liabilities, and total stockholders' equity. The first transaction is completed as an example.

$$\begin{matrix} \text{Transaction} & \text{Total Assets} & \text{Total Liabilities} & \text{Total Stockholders' Equity}\\ \hline \text{Issue common stock} & \text{$+$} & \text{NE} & \text{$+$}\\ \text{Issue preferred stock} & \text{ } & \text{ } & \text{ }\\ \text{Purchase treasury stock} & \text{ } & \text{ } & \text{ }\\ \text{Sale of treasury stock} & \text{ } & \text{ } & \text{ }\\ \text{Declare cash dividend} & \text{ } & \text{ } & \text{ }\\ \text{Pay cash dividend} & \text{ } & \text{ } & \text{ }\\ \text{100$\\\%$ stock dividend} & \text{ } & \text{ } & \text{ }\\ \text{$2-$ for $-1$ stock split} & \text{ } & \text{ } & \text{ }\\ \end{matrix}$$

Indicate what impact (+ for increase; – for decrease) the following transactions would have on the accounting equation, Assets = Liabilities + Equity.

Indicate what impact (+ for increase; – for decrease) the following transactions would have on the accounting equation, Assets = Liabilities + Equity.

One way to describe the labor leisure trade off is __________.

Prepare journal entries to record the business transaction and related adjusting entry for the following:

B. December 31, remaining unexpired balance of insurance, $3,000

Indicate what impact (+ for increase; – for decrease) the following transactions would have on the accounting equation, Assets = Liabilities + Equity.

Indicate what impact (+ for increase; – for decrease) the following transactions would have on the accounting equation, Assets = Liabilities + Equity.

Indicate what impact (+ for increase; – for decrease) the following transactions would have on the accounting equation, Assets = Liabilities + Equity.

Explain how the following items affect equity: revenue, expenses, investments by owners, and distributions to owners.

Indicate what impact (+ for increase; – for decrease) the following transactions would have on the accounting equation, Assets = Liabilities + Equity.