Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 $675 cash in business in exchange for stock 2. Receives $475 cash for services provided 3. Pays $595 cash for employee wages 4. Buys $725 of equipment on credit 5. Purchases $825 of supplies on credit 6. Buys equipment for $925 cash 7. Pays $765 on accounts payable 8. Provides $965 of services on credit 9. Pays $615 cash in dividends 10. Collects $990 cash on accounts receivable Answer is complete but not entirely correct. Total Assets +675 -675 +675 +675 Balance Sheet X+675 X+675 +675 X+675 X+675 +675 X+675 +675 X+675 +675 X+675 +675 X+675 +675 Income Statement Net Income Total Total Liabilities Equity +675 X+675 X+675 X+675 X+675 +675 +675 X+675 +675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 +675 +675 X+675 X+675 X+675 X+675 X+675 30 Statement of Cash Flows Operating Investing Financing Activities Activities Activities +675 b. X+675 X+675 X+675 X+675 X+675 X+675 +675 X+675 X+675 X+675 X+675 X+675 +675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 XXXXXXXXX x x x x x x x

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 $675 cash in business in exchange for stock 2. Receives $475 cash for services provided 3. Pays $595 cash for employee wages 4. Buys $725 of equipment on credit 5. Purchases $825 of supplies on credit 6. Buys equipment for $925 cash 7. Pays $765 on accounts payable 8. Provides $965 of services on credit 9. Pays $615 cash in dividends 10. Collects $990 cash on accounts receivable Answer is complete but not entirely correct. Total Assets +675 -675 +675 +675 Balance Sheet X+675 X+675 +675 X+675 X+675 +675 X+675 +675 X+675 +675 X+675 +675 X+675 +675 Income Statement Net Income Total Total Liabilities Equity +675 X+675 X+675 X+675 X+675 +675 +675 X+675 +675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 +675 +675 X+675 X+675 X+675 X+675 X+675 30 Statement of Cash Flows Operating Investing Financing Activities Activities Activities +675 b. X+675 X+675 X+675 X+675 X+675 X+675 +675 X+675 X+675 X+675 X+675 X+675 +675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 XXXXXXXXX x x x x x x x

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
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 $675 cash in business in exchange for stock 2. Receives $475 cash for services provided 3. Pays $595 cash for employee wages 4. Buys $725 of equipment on credit 5. Purchases $825 of supplies on credit 6. Buys equipment for $925 cash 7. Pays $765 on accounts payable 8. Provides $965 of services on credit 9. Pays $615 cash in dividends 10. Collects $990 cash on accounts receivable Answer is complete but not entirely correct. Total Assets +675 -675 +675 +675 +675 +675 +675 +675 +675 +675 Balance Sheet Total Liabilities X+675 X +675 X +675 X +675 X +675 X +675 X +675 a. X+675 X+675 Income Statement Net Income Total Equity +675 X +675 X +675 X +675 X+675 X +675 X+675 X+675 X +675 X +675 X +675 X+675 X +675 X+675 X +675 X+675 X +675 +675 X +675 XX Statement of Cash Flows Operating Investing Financing Activities Activities Activities +675 X+675 X +675 X +675 X+675 X+675 X+675 b. X +675 X +675 X +675 X+675 X +675 X +675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 x x x x x x x x
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 $675 cash in business in exchange for stock 2. Receives $475 cash for services provided 3. Pays $595 cash for employee wages 4. Buys $725 of equipment on credit 5. Purchases $825 of supplies on credit 6. Buys equipment for $925 cash 7. Pays $765 on accounts payable 8. Provides $965 of services on credit 9. Pays $615 cash in dividends 10. Collects $990 cash on accounts receivable Answer is complete but not entirely correct. Total Assets +675 -675 +675 +675 +675 +675 +675 +675 +675 +675 Balance Sheet Total Liabilities X+675 X +675 X +675 X +675 X +675 X +675 X +675 a. X+675 X+675 Income Statement Net Income Total Equity +675 X +675 X +675 X +675 X+675 X +675 X+675 X+675 X +675 X +675 X +675 X+675 X +675 X+675 X +675 X+675 X +675 +675 X +675 XX Statement of Cash Flows Operating Investing Financing Activities Activities Activities +675 X+675 X +675 X +675 X+675 X+675 X+675 b. X +675 X +675 X +675 X+675 X +675 X +675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 X+675 x x x x x x x x
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS