Concept explainers
Problem 1-1B 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
a. | b. | |
Income | ||
Balance Sheet | Statement | Statement of Cash Flows |
Transaction | TotalAssets | Total Liab. | Total Equity | NetIncome | Operating Activities | Investing Activities | Financing Activities | |
1 | Owner invests $800 cash in business | +800 | +800 | +800 | ||||
2 | Purchases $100 of supplies on credit | |||||||
3 | Buys equipment for $400 cash | |||||||
4 | Provides services for $900 cash | |||||||
5 | Pays $400 cash for rent incurred | |||||||
6 | Buys $200 of equipment or credit | |||||||
7 | Pays $300 cash for wages incurred | |||||||
8 | Owner withdraws $50 cash | |||||||
Provides $600 services on credit | ||||||||
10 | Collects $600 cash on |
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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 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…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_forward15 Which account would be increased with a debit? Multiple Choice Supplies Accounts Payable Common Stock Retained Earningsarrow_forward
- 14. 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_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_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
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- Quiz Module 1 Some of the following accounts may appear on more than one statement. Would you please tell me what statement or statements they are on? 1) Net Income 2) End-of-period retained earnings balance 3) Net decrease in cash 4) End-of-period cash balance 5) Dividends payable 6) Retained Earnings 1/1 For the following could you please list the statment and if it is a real or nominal account? 1) Interest income 2) Bonds payable 3) Prepaid Insurance 4) Supplies on handarrow_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_forwardWhat 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_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College