Montgomery Company Experienced the Following Events During 2015 (All Were

question 34

Essay

Montgomery Company experienced the following events during 2015 (all were cash events):
1.Issued a note
2.Paid operating expenses
3.Issued common stock
4.Provided services to customers
5.Repaid part of the note in event 1
6.Paid dividends to stockholders
Required:
Indicate how each of these events affects the accounting equation by writing the letter I for increase,the letter D for decrease,and NA for no effect under each of the components of the accounting equation.Use only one item of entry in each column.The first event is done for you as an example.

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Definitions:

Coffee Shop

A retail establishment that sells coffee, tea, and often light meals or pastries, providing a social or work space for customers.

Franchise

Contractual agreement in which a franchisee gains the right to produce and/or sell the franchisor’s products under that company’s brand name if they agree to certain operating requirements.

Mall

A large enclosed shopping area with a variety of stores and services in one or more buildings, providing a central location for consumers to shop.

Place Utility

The value added to products by having them where they are needed or wanted by consumers, thus enhancing customer satisfaction.