The following instructions apply to Questions 1 and 2. In each of the seven boxes in the table that accompanies these two questions, indicate how each event affects the elements of financial statements. Use the following letters (I, D or N) to record your answer in the box shown below each element. You do not need to enter amounts.

Record Increase or Decrease or No effect for the following:

assets, liabilities, equity, revenues, expenses, net income, cash

1. Jones Co. paid a $10,000 cash dividend to its stockholders in the current accounting period, after having declared it and recorded that declaration in the prior accounting period. Record the impact in the current accounting period.

2. Smith performed $50,000 of services for a customer from whom Smith had received and properly accounted for full payment in advance during the previous accounting period. Record the impact in the current accounting period.