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 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 $750 cash in business in exchange for stock 2. Receives $550 cash for services provided 3. Pays $350 cash for employee wages 4. Buys $480 of equipment on credit 5. Purchases $500 of supplies on credit 6. Buys equipment for $680 cash 7. Pays $520 on accounts payable Total Assets +750 +550 350 Balance Sheet Total Total Liabilities Equity +750 +550 350 Income Statement Net Income +550 350 Statement of Cash Flows Operating Investing Financing Activities Activities Activities +750 +550 -350
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 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 $750 cash in business in exchange for stock 2. Receives $550 cash for services provided 3. Pays $350 cash for employee wages 4. Buys $480 of equipment on credit 5. Purchases $500 of supplies on credit 6. Buys equipment for $680 cash 7. Pays $520 on accounts payable Total Assets +750 +550 350 Balance Sheet Total Total Liabilities Equity +750 +550 350 Income Statement Net Income +550 350 Statement of Cash Flows Operating Investing Financing Activities Activities Activities +750 +550 -350
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 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 $750 cash in business in exchange for stock
2. Receives $550 cash for services provided
3. Pays $350 cash for employee wages
4. Buys $480 of equipment on credit
5. Purchases $580 of supplies on credit
6. Buys equipment for $680 cash.
7. Pays $520 on accounts payable
8. Provides $720 of services on credit
Pays $370 cash individends
10. Collects $745 cash on accounts receivable
Total
Assets
-750
+550
350
Balance Sheet
▼
Total
Total
Liabilities Equity
+750
+550
350
Income
Statement
Net
Income
+550
350
Statement of Cash Flows
Operating Investing Financing
Activities Activities Activities
+750
+550
350
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