Match the transaction to the correct financial statement effect. + indicates increase, (indicates decrease) DR Interest receivable CR Interest revenue +Assets, (Liabilities) DR Equipment CR Cash + Expenses, (Net income), (Stockholders' Equity), +Liability DR Cash CR Notes payable +Assets, (Assets) DR Interest expense CR Interest payable +Revenue, +Net income, +Stockholders' Equity, +Asset

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Educational Website Transcription**

**Title: Understanding Financial Statement Transactions**

**Objective:** Match the transaction to the correct financial statement effect. Note that a plus sign (+) indicates an increase, while a minus sign (or parentheses) indicate a decrease.

**Transactions and Options:**

1. **Transaction:** DR Interest receivable CR Interest revenue
2. **Transaction:** DR Equipment CR Cash
3. **Transaction:** DR Cash CR Notes payable
4. **Transaction:** DR Interest expense CR Interest payable

**Dropdown Options Describing Financial Statement Effects:**

1. **+Assets, (Liabilities)**
2. **+Expenses, (Net income), (Stockholders' Equity), +Liability**
3. **+Assets, (Assets)**
4. **+Revenue, +Net income, +Stockholders' Equity, +Asset**

**Instructions:** For each transaction, select the correct financial statement effect from the dropdown list provided next to the transactions. This will help understand how different transactions impact various components of the financial statements.
Transcribed Image Text:**Educational Website Transcription** **Title: Understanding Financial Statement Transactions** **Objective:** Match the transaction to the correct financial statement effect. Note that a plus sign (+) indicates an increase, while a minus sign (or parentheses) indicate a decrease. **Transactions and Options:** 1. **Transaction:** DR Interest receivable CR Interest revenue 2. **Transaction:** DR Equipment CR Cash 3. **Transaction:** DR Cash CR Notes payable 4. **Transaction:** DR Interest expense CR Interest payable **Dropdown Options Describing Financial Statement Effects:** 1. **+Assets, (Liabilities)** 2. **+Expenses, (Net income), (Stockholders' Equity), +Liability** 3. **+Assets, (Assets)** 4. **+Revenue, +Net income, +Stockholders' Equity, +Asset** **Instructions:** For each transaction, select the correct financial statement effect from the dropdown list provided next to the transactions. This will help understand how different transactions impact various components of the financial statements.
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