Identifying transaction type and effect on the financial statements


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Identifying transaction type and effect on the financial statements 1 answer below » Identifying transaction type and effect on the financial statements Required Identify whether each of the following transactions is an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also show the effects of the events on the financial statements using the horizontal statements model. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the financial statements. In the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first two View complete question » Identifying transaction type and effect on the financial statements Required Identify whether each of the following transactions is an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also show the effects of the events on the financial statements using the horizontal statements model. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the financial statements. In the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first two transactions have been recorded as examples. Stockholders’ Equity Event No. Type of Event Assets = Liabilities + Common Stock + Retained Earnings Rev. – Exp. = Net Inc. Cash Flows a AE ID NA NA NA NA NA NA D IA b AS I NA NA I NA NA NA I FA a. Purchased land for cash. b. Acquired cash from the issue of common stock. c. Collected cash from accounts receivable. d. Paid cash for operating expenses. e. Recorded accrued salaries. f. Paid cash for supplies. g. Performed services on account. h. Paid cash advance for rent on office space. i. Performed services for cash. j. Purchased a building with cash and issued a note payable. k. Paid cash for salaries accrued at the end of a prior period. l. Paid a cash dividend to the stockholders. m. Adjusted books to reflect the amount of prepaid rent expired during the period. n. Incurred operating expenses on account. o. Paid cash on accounts payable. p. Received cash advance for services to be provided in the future. View less » Jul 24 2014 07:51 AM

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