Indicate How Each Event Affects the Elements of Financial Statements $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$

question 29

Short Answer

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
The stock of the Hamlin Oil Co. was trading at $12 per share on March 27 when the company announced that it had recently discovered a large oil reserve. The stock price immediately went up to $18 per share. The company had 10,000,000 shares outstanding. Indicate the effects of this discovery on Hamlin's financial statements. $\begin{array}{|l|l|l|l|l|l|}\text { Assets Liabilities } & \text { Equity } & \text { Revenues } & \text { Expenses } & \begin{array}{c}\text { Net } \\\text { Income }\end{array} & \begin{array}{c}\text { Cash } \\\text { Flow }\end{array}\\\hline&&&\end{array}$

---

Definitions:

Patent Records

Official documents and files that contain the details and specifications of inventions for which patents have been granted, providing legal protection.

Copyright Act

Legislation that provides the legal framework for copyright protection, rights, and infringement issues.

Computer Software

Programs and operational information used by a computer to perform specific tasks.

Exclusive Right

A legal entitlement that allows the holder to be the sole person or entity to use, produce, or sell a particular thing or service.