A sole proprietorship was established on January 1, Year 1, when it received $45,000 cash from Connor Howard, the owner. During Year 1, the business earned $92,000 in cash revenues and paid $72,000 in cash expenses. Howard withdrew $10,300 from the business during Year 1. Required: Indicate how each of the transactions and events for the Howard sole proprietorship affects the financial statements model, below. Indicate dollar amounts of increases and decreases. For cash flows, indicate whether each is an operating activity (OA), investing activity (IA), or financing activity (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Assets 11 """ Balance Sheet Liabilities + + Owner's Equity Howard, capital Revenues Income Statement Expenses | |||||| = Net Income Statement of Cash Flows

A sole proprietorship was established on January 1, Year 1, when it received $45,000 cash from Connor Howard, the owner. During Year 1, the business earned $92,000 in cash revenues and paid $72,000 in cash expenses. Howard withdrew $10,300 from the business during Year 1. Required: Indicate how each of the transactions and events for the Howard sole proprietorship affects the financial statements model, below. Indicate dollar amounts of increases and decreases. For cash flows, indicate whether each is an operating activity (OA), investing activity (IA), or financing activity (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Assets 11 """ Balance Sheet Liabilities + + Owner's Equity Howard, capital Revenues Income Statement Expenses | |||||| = Net Income Statement of Cash Flows

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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