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P1-1A Identify how each of the following separate transactions

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P1-1A Identify how each of the following separate transactions affects financial statements. 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. For the statement of cash flows, identify how each transaction affects cash flows from operating activities, cash flows from financing activities, and cash flows from investing activities. For increases, place a “1” in the column or columns. For decreases, place a “2” in the column or columns. If both an increase and a decrease occur, place a “1y2” in the column or columns. The first transaction is completed as an example.

1 Owner invests cash in exchange for stock
2 Incurs legal costs on credit
3 Pays cash for employee wages
4 Borrows cash by signing long-term note payable
5 Receives cash for services provided
6 Buys land by signing note payable
7 Buys office equipment for cash
8 Provides services on credit
9 Collects cash on receivable from transaction (8)
10 Owner withdraws cash

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