Business, Accounting, and You 31 S1-10. Basic financial statements (Learning Objective 6) 5-10 min. Label each of the items listed with the abbreviation of the financial statement on which it appears. Items may appear on more than one statement. Income Statement (S) Balance Sheet (BS) Statement of Retained Earnings (RE) 1. Accounts Receivable 2. Notes Payable 3.Advertising Expense 4. Service Revenue 5. Retained Earnings 6. Office Supplies S1-11. Entering transactions in the accounting equation (Learning Objective 5) 5-10 min. As a manager of a department store, you must deal with a variety of business transac- tions. Place the letter of each of the following transactions next to the effect it has on the accounting equation. a. Paid cash to the stockholders as a distribution of earnings b. Paid cash to purchase land for building site Paid cash on an account payable d. Sold stock to stockholders c. e. Received cash from the bank in exchange for a note payable 1. Increase an asset and increase stockholders' equity