Identify how each of the following separate transactions through 10 affects financial statements. For increases, place a "i" 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 essets, total abilities, and total equity 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 activities, cash flows from investing activities, and cash flows from Snancing activities. Transaction 1. Owner $300 cash in business in exchange for stock 2. Reives $700 cash for services provided 3 Pays $500 cash for employee wagen & Buys $100 of equipment on cred 5 Purchases $200 af supplies on cred & Buys for $300 cash 7 Pays 1200 on accounts payable & Provides $400 services on cre Pays $50 for dividend 10. Colects $400 cash an accounts receivable Total Assets +900 4500 -700 Balance Shot Total Li Total Equity +900 -500 -300 Income Statement Statement of Cash Flows Net Operating Investing Financie Incoms Activities Activities Activities +900 1-700
Identify how each of the following separate transactions through 10 affects financial statements. For increases, place a "i" 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 essets, total abilities, and total equity 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 activities, cash flows from investing activities, and cash flows from Snancing activities. Transaction 1. Owner $300 cash in business in exchange for stock 2. Reives $700 cash for services provided 3 Pays $500 cash for employee wagen & Buys $100 of equipment on cred 5 Purchases $200 af supplies on cred & Buys for $300 cash 7 Pays 1200 on accounts payable & Provides $400 services on cre Pays $50 for dividend 10. Colects $400 cash an accounts receivable Total Assets +900 4500 -700 Balance Shot Total Li Total Equity +900 -500 -300 Income Statement Statement of Cash Flows Net Operating Investing Financie Incoms Activities Activities Activities +900 1-700
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 "i" 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 essets, total abilities, and total equity 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 activities, cash flows from investing
activities, and cash flows from Snancing activities.
Transaction
1. Owner invest $300 cash in business in exchange for vock
2 Rives $700 cash for services provided
3 Pays $500 cash for employee wages
& Buys $100 of equipment on cred
5 Purchases $200 af supplies on credit
& Buysen for $300 cash
7. Pays $200 on accounts payable
& Provides $400 services on cred
Pays $50
for dividends
10. Colects $400 cash an accounts receivable
Total
Assets
+900
+500
-700
Balance Sheet
Total
Li
Total
Equity
+900
-500
-700
Income
Statement
Statement of Cash Flow
Net Operating Investing Financing
Activities Activities Activitie
Income
-700
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