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. Transaction 1. Owner invests $900 cash in business in exchange for stock 2. Receives $700 cash for services provided 3. Pays $500 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 of services on credit 9. Pays $50 cash in dividends 10. Collects $400 cash on accounts receivable Balance Sheet Total Total Total Assets Liabilities Equity +900 +900 Income Statement Net Income Statement of Cash Flows Operating Investing Financing Activities Activities Activities +900
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. Transaction 1. Owner invests $900 cash in business in exchange for stock 2. Receives $700 cash for services provided 3. Pays $500 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 of services on credit 9. Pays $50 cash in dividends 10. Collects $400 cash on accounts receivable Balance Sheet Total Total Total Assets Liabilities Equity +900 +900 Income Statement Net Income Statement of Cash Flows Operating Investing Financing Activities Activities Activities +900
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 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.
Transaction
1. Owner invests $900 cash in business in exchange for stock
2. Receives $700 cash for services provided
3. Pays $500 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 of services on credit
9. Pays $50 cash in dividends
10. Collects $400 cash on accounts receivable
Total
Assets
+900
a.
Balance Sheet
Total
Total
Liabilities Equity
+900
Income
Statement
Net
Income
b.
Statement of Cash Flows
Operating Investing Financing
Activities Activities Activities
+900
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