Required Identify whether each of the following transactions is an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event affects the accounting equation by placing a + for increase, - for decrease, and NA for not affected under each of the components of the accounting equation. Finally, indicate whether the effect requires a debit or credit entry. The first event is recorded as an example. a. Purchased supplies on account. b. Acquired cash from the issue of common stock. c. Paid cash in advance for one year of rent. d. Paid salaries payable. e. Received cash for services to be performed in the future. f. Paid a cash dividend to the stockholders. g. Received cash in payment of accounts receivable. h. Paid accounts payable. i. Provided services for cash. j. Recognized expense for supplies used during the period. k. Recognized revenue for services completed for which cash had been collected previously. I. Incurred other operating expenses on account. m. Purchased land with cash.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Stockholders' Equity
Assets
Liabilities
Common Stock
Retained Earnings
+Debit
+Credit
%3D
+ NA
+ NA
+
%3D
%3D
+
+
+
%3D
II
II
II
I I I1I
II
Transcribed Image Text:Stockholders' Equity Assets Liabilities Common Stock Retained Earnings +Debit +Credit %3D + NA + NA + %3D %3D + + + %3D II II II I I I1I II
Required
Identify whether each of the following transactions is an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange
(CE). Also explain how each event affects the accounting equation by placing a + for increase, - for decrease, and NA for not affected
under each of the components of the accounting equation. Finally, indicate whether the effect requires a debit or credit entry. The first
event is recorded as an example.
a. Purchased supplies on account.
b. Acquired cash from the issue of common stock.
c. Paid cash in advance for one year of rent.
d. Paid salaries payable.
e. Received cash for services to be performed in the future.
f. Paid a cash dividend to the stockholders.
g. Received cash in payment of accounts receivable.
h. Paid accounts payable.
i. Provided services for cash.
j. Recognized expense for supplies used during the period.
k. Recognized revenue for services completed for which cash had been collected previously.
I. Incurred other operating expenses on account.
m. Purchased land with cash.
Transcribed Image Text:Required Identify whether each of the following transactions is an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event affects the accounting equation by placing a + for increase, - for decrease, and NA for not affected under each of the components of the accounting equation. Finally, indicate whether the effect requires a debit or credit entry. The first event is recorded as an example. a. Purchased supplies on account. b. Acquired cash from the issue of common stock. c. Paid cash in advance for one year of rent. d. Paid salaries payable. e. Received cash for services to be performed in the future. f. Paid a cash dividend to the stockholders. g. Received cash in payment of accounts receivable. h. Paid accounts payable. i. Provided services for cash. j. Recognized expense for supplies used during the period. k. Recognized revenue for services completed for which cash had been collected previously. I. Incurred other operating expenses on account. m. Purchased land with cash.
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