Identify how each of the following separate transactions / through 10 affects financial statements. For increases, place a "+" and the dollar amount in the column or columns. For decreases, place a "-" and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example. Required a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total eq- A1 P1 uity. For the income statement, identify how each transaction affects net income. 0 b. For the statement of cash flows, identify how each transaction affects cash flows from operating ac- tivities, cash flows from investing activities, and cash flows from financing activities. 2 3 4 5 6 7 Transaction Owner invests $800 cash in business in exchange for stock Purchases $100 of supplies on credit Buys equipment for $400 cash Provides services for $900 cash Pays $400 cash for rent incurred Buys $200 of equipment on credit Pays $300 cash for wages incurred Total Assets +800 Balance Sheet Total Liab Total Equity Income Statement Net Income PROBLEM SET B Problem 1-18 Identifying effects of transactions on financial statements Operating Activities Statement of Cash Flows Investing Activities Financing Activities
Identify how each of the following separate transactions / through 10 affects financial statements. For increases, place a "+" and the dollar amount in the column or columns. For decreases, place a "-" and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example. Required a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total eq- A1 P1 uity. For the income statement, identify how each transaction affects net income. 0 b. For the statement of cash flows, identify how each transaction affects cash flows from operating ac- tivities, cash flows from investing activities, and cash flows from financing activities. 2 3 4 5 6 7 Transaction Owner invests $800 cash in business in exchange for stock Purchases $100 of supplies on credit Buys equipment for $400 cash Provides services for $900 cash Pays $400 cash for rent incurred Buys $200 of equipment on credit Pays $300 cash for wages incurred Total Assets +800 Balance Sheet Total Liab Total Equity Income Statement Net Income PROBLEM SET B Problem 1-18 Identifying effects of transactions on financial statements Operating Activities Statement of Cash Flows Investing Activities Financing Activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Identify how each of the following separate transactions through 10 affects financial statements. For
increases, place a "+" and the dollar amount in the column or columns. For decreases, place a "-" and the
dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-)
along with dollar amounts. The first transaction is completed as an example.
Required
a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total cq- A1 P1
uity. For the income statement, identify how each transaction affects net income.
b. For the statement of cash flows, identify how each transaction affects cash flows from operating ac-
tivities, cash flows from investing activities, and cash flows from financing activities.
2
3
4
5
6
7
8
9
10
Transaction
Owner invests $800 cash in business in
exchange for stock
Purchases $100 of supplies on credit
Buys equipment for $400 cash
Provides services for $900 cash
Pays $400 cash for rent incurred
Buys $200 of equipment on credit
Pays $300 cash for wages incurred
Pays $50 cash in dividends
Provides $600 services on credit
Collects $600 cash on accounts receivable
Total
Assets
+800
Balance Sheet
Total
Liab.
Total
Equity
+-800
Income
Statement
Net
Income
PROBLEM SET B
Problem 1-18
Identifying effects of
transactions on financial
statements
Operating
Activities
Statement of Cash Flows
Investing
Activities
Financing
Activities
+-800
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