Classify the following items as issuance of stock, dividends, revenues, or expenses. then indicate whether each item increases or decreases stockholders’ equity. 1. dividends is ; it stockholders' equity. 2. rent revenue is ; it stockholders' equity. 3. advertising expense is a(n) ; it stockholders' equity. 4. when stockholders pay cash into the business, it is ; it stockholders' equity.

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.