Question

Homework Help Save & Exit Check my 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. Sheet Income Statement Total Assets Net Income Balance Sheet Total Total Liabilities Equity 1900 4700 500 Statement of Cash Flows Operating Investing Financing Activities Activities Activities 900 700 500 700 500 1 Transaction 1. Owner Invests 5900 cash in business in exchange for stock 2 Receives 5700 cash for services provided 3. Pays $500 cash for employee wages 4 Buys 5100 of equipment on credit 5. Purchases $200 of supplies on credit 6 Buys equipment for $300 cash 7 Pays $200 on accounts payable 3. Provides S400 services on credit 9. Pays $50 cash for dividends 10. Collects $400 cash on accounts receivable Sale 18181 200 200 400 -400 400 to search

Answer 1

I Guess briefly you have solved the question. You just need to check if there is any corrections

Following are my suggestions

Point 5: Supplies means it is an expenses (Assumed to be consumed in the year) Negative Net income of 200 and Total Equity Negative 200

Point 6: Equipment for Cash. So fixed Assets increase and Cash Decrease So Nil Impact on Assets

Point 10: Cash increase and Receivable decrease by Rs. 400 So net NIL Assets impact.