Concept explainers
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
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 |
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Fundamental Accounting Principles
- Identify how each of the following separate transactions 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 cq- A1 P1 uity. 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 ac- tivities, cash flows from investing activities, and cash flows from financing activities. 2 3 4 5 6 7 8 9 10 Transaction Owner invests $800 cash in business in exchange for stock Purchases $100 of supplies on credit Buys equipment for $400 cash Provides services for $900 cash Pays $400 cash for rent…arrow_forwardIdentify 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.arrow_forwardUse the following to answer questions 16 - 19 For each transaction indicate whether it should: A. increase, B. decrease, or C. no effect. Credit sales transaction cycle Assets Liabilities Stockholders' equity Revenues Expenses 16. Provide services on account 17. Estimate uncollectible accounts 18. Write off accounts as uncollectible 19. Collect on account previously written offarrow_forward
- 15 Which account would be increased with a debit? Multiple Choice Supplies Accounts Payable Common Stock Retained Earningsarrow_forward14. Applying the concept of double- entry accounting system, which of the following refers to term "debit"? O A. Increase B. Decrease O C. Left side O D. Right sidearrow_forwardJOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19arrow_forward
- Identify whether each of the following transactions would be recorded with a debit (Dr) or credit (Cr) entry. Table 3.7arrow_forwardIndicate what impact ( for increase; for decrease) the following transactions would have on the accounting equation, . Table 3.17arrow_forwardD Question 2 In a tabular analysis each row must balance mathematically. the columns should be totaled first. the cash column entries should be labeled by name (e.g Payroll). each row must balance in the number of column entries.arrow_forward
- What is the EFFECT on accounting equation for the transaction "Commission Received OMR 100"? a. Decrease Cash, Decrease Commission O b. Increase Creditor, Increase Commission O c. Increase Cash, Increase Commission O d. Decrease Cash, Increase Commissionarrow_forwardIdentify the correct pair of formula from the following column I and II: (Choose the correct alternative) Column I Column II A Current Account Surplus i. Receipts Payments C Balance Current Account i. Receipts + Payments D Current Account Deficit iv. Receipts < Payments Alternatives: а) А -i b) В - ii c) C - ii d) D - ivarrow_forwardYour answer: Chapter 2 2 8 14 B. Answer the following chapter-end question. Chapter 2 Q. 1. Identify the four financial statements and describe the purpose of each. Your answer: Q. 6. Explain the difference between current and noncurrent assets and liabilities. Why is this distinction important to stakeholdersarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College