5 Simple Statements About 1200 cash Explained

There aren't any changes to liabilities or stockholders’ equity, And so the equation remains in harmony. Considering the fact that there are no revenues or fees influenced, there isn't a impact on the profits statement.

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With both of those totals rising by $20,000, the accounting equation, and thus our stability sheet, will likely be in stability. There is not any effect on the cash flow assertion from this transaction as there were no revenues or fees recorded.

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Impact on the money click here statements: You've got dividends of $100. An increase in dividends contributes to a lower in stockholders’ equity (retained earnings). Cash is reducing, so overall property will lower by $100, impacting the balance sheet.

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