Morrison Co. experienced the following events during 2016: 1. Acquired cash from the issue of common stock.

Question:

Morrison Co. experienced the following events during 2016:

1. Acquired cash from the issue of common stock.

2. Borrowed cash.

3. Collected cash from providing services.

4. Purchased land with cash.

5. Paid operating expenses with cash.

6. Paid a cash dividend to the stockholders.

Required

Explain how each of these events affect the accounting equation by writing the letter I for increase, the letter D for decrease, and NA for does not affect under each of the components of the accounting equation. The first event is shown as an example.

Morrison Co. experienced the following events during 2016:
1. Acquired cash

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...