Question: 1. Indicate whether each of the following types of transactions will
(a) increase stockholders' equity or
(b) decrease stockholders' equity.
1. Paid cash for rent expense.
2. Paid cash dividends.
3. Received cash for fees earned.
4. Issued capital stock for cash.
5. Paid cash for utilities expense.
2. The income statement of a corporation for the month of October indicates a net income of $158,250. During the same period, $180,000 in cash dividends were paid. Would it be correct to say that the business incurred a net loss of $21,750 during the month? Discuss.