Chapter 1, Problem 1APSA

Problem 1-1A Identifying effects of transactions on financial statements A1 P1

Identify how each of the following separate transactions 1 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 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 financing activities.

a.		b.
	Income
Balance Sheet	Statement	Statement of Cash Flows

	Transaction	TotalAssets	Total Llab.	Total Equity	NetIncome	Operating Actlvities	Investing Activities	Financing Activities
1	Owner invests $900 cash in business	+900		+900				+900
2	Receives $700 cash for services provided
3	Pays S&00 cash for employee wages
4	Buys $100 of equipment on credit
5	Purchases $200 of supplies on credit
6	Buys equipment for $300 cash
7	Pays $200 on accounts payable
8	Provides $400 services on credit
9	Owner withdraws $50 cash
10	Collects $400 cash on accounts receivable