Task 2: Effects of a transaction on asset/liability/owner's equity Identify how each of the following transactions affects the company's financial statements. For the balance sheet, identify how each transaction affects total assets, total liabilities, and owner's equity. If there is an increase, place a "+" in the column or columns. If there is decrease, place a "-" in the column or columns. The line for the first transaction is completed as an example. Transaction Total assets Total liabilities Equity Example Purchased supplies +/- n/a n/a 1 Owner invested cash 2 Bought equipment 3 4 Made partial payment on bill Collected cash for services completed 5 Received partial payment 6 Borrowed cash with note payable 7 Sold services on credit 8 Bought equipment on account 9 Collected receivable from (7) 10 Bought asset with note payable

Task 2: Effects of a transaction on asset/liability/owner's equity Identify how each of the following transactions affects the company's financial statements. For the balance sheet, identify how each transaction affects total assets, total liabilities, and owner's equity. If there is an increase, place a "+" in the column or columns. If there is decrease, place a "-" in the column or columns. The line for the first transaction is completed as an example. Transaction Total assets Total liabilities Equity Example Purchased supplies +/- n/a n/a 1 Owner invested cash 2 Bought equipment 3 4 Made partial payment on bill Collected cash for services completed 5 Received partial payment 6 Borrowed cash with note payable 7 Sold services on credit 8 Bought equipment on account 9 Collected receivable from (7) 10 Bought asset with note payable

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter2: Analyzing Transactions: The Accounting Equation

Section: Chapter Questions

Problem 5SEA: FINANCIAL STATEMENT ACCOUNTS Label each of the following accounts as an asset (A), liability (L),...

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FINANCIAL STATEMENT ACCOUNTS Label each of the following accounts as an asset (A), liability (L), owners equity (OE), revenue (R), or expense (E). Indicate the financial statement on which the account belongsincome statement (IS), statement of owners equity (SOE), or balance sheet (BS)in a format similar to the following.
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