Question

Answer is not complete. b. Balance Sheet Total Liabilities Income Statement Net Income Transaction Statement of Cash Flows Operating Investing Financing Activities Activities Activities +300 Owner invests $300 cash in business Total Assets +300 +100 -220 Total Equity +300 +100 -220 +100 -220 +350 +450 Receives $100 cash for services provided Pays $220 cash for employee wages Buys $350 of equipment on credit Purchases $450 of supplies on credit Buys equipment for $550 cash Pays $390 on accounts payable Provides $590 services on credit Owner withdraws $240 cash +550 +550 -550 -390 -390 -390 -590 X -240 -240 Collects $615 cash on accounts receivable +615 +615

I saved my completed answers but I am stuck on where to place the rest of the transactions.

Answer 1

Answer

Transaction	Balance Sheet	Income Statement	Statement of Cash Flows
Total Assets	Total Liabilities	Total Equity	Net Income	Operating Activities	Investing Activities	Financing Activities
Owner Invest 300 Cash in Business	300		300				300
Receives 100 cash for services rendered	100		100	100	100
paid 220 for employees wages	(220)		(220)	(220)	(220)
buy 350 of equipment on credit	350	350
purchases 450 of supplies on credit	450	450
buy equipment for 550 cash	550					(550)
	(550)
paid 390 on accounts payable	(390)	(390)			(390)
provides 590 services on credit	590		590	590
owner withdraws 240 cash	(240)		(240)				(240)
collects 615 cash on accounts receivable	615				615
	(615)

Notes:

1. Owner invested 300 in cash so it will increase cash and equity and will affect financing Activity.

2. We have received 100 cash for services rendered so it will increase cash and this will result in revenue-Income and net equity will increase. And It Affects Operating Activity

3. We have paid cash for wages so it will decrease cash and decrease the income and equity will decrease accordingly and it affects operating activity too.

4. We bought machinery on credit, so it will increase the asset and will increase the liability.

5. We bought supplies on credit so that will increase asset-supplies and increase the liabilities.

6. We bought machinery for cash so that will increase the machinery and decrease the cash so there is nil affect on cash but it will affect Investing activity.

7. We paid accounts payable in cash so it will decrease cash and liabilities and affects operating activity also.

8. We have provided services on credit so that will increase asset- Accrued income and increase in income and equity.

9. Owner withdraws cash so it will decrease cash and equity and affects financing activity also.

10. We have collected cash from receivable so it will increase cash and decrease receivables and affects operating activity also.

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