The following selected events were experienced by either Fact Finders, Inc., a corporation, or Peter Flip, the

Question:

The following selected events were experienced by either Fact Finders, Inc., a corporation, or Peter Flip, the major stockholder. State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected.
a. Received $8,500 cash from customers on account.
b. Flip used personal funds to purchase a fl at screen TV for his home.
c. Sold land and received cash of $71,000 (the land was carried on the company’s books at $71,000).
d. Borrowed $56,000 from the bank.
e. Made cash purchase of land for a building site, $93,000.
f. Received $22,000 cash and issued stock to a stockholder.
g. Paid $68,000 cash on accounts payable.
h. Purchased equipment and signed a $104,000 promissory note in payment.
i. Purchased merchandise inventory on account for $16,500.
j. The business paid Flip a cash of $7,000.

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...