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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