Problem

Effect of journal entries on financial statements Event No.Accou...

Effect of journal entries on financial statements

Event No.	Account Title	Debit	Credit
1	Cash	XXX
1	Common Stock		XXX
2	Cash	XXX
2	Unearned Revenue		XXX
3	Supplies	XXX
3	Accounts Payable		XXX
4	Accounts Receivable	XXX
4	Service Revenue		XXX
5	Cash	XXX
5	Accounts Receivable		XXX
6	Cash	XXX
6	Service Revenue		XXX
7	Salaries Expense	XXX
7	Cash		XXX
8	Dividends	XXX
8	Cash		XXX
9	Prepaid Rent	XXX
9	Cash		XXX
10	Property Tax Expense	XXX
10	Cash		XXX
11	Supplies Expense	XXX
11	Supplies		XXX
12	Rent Expense	XXX
12	Prepaid Rent		XXX
13	Unearned Revenue	XXX
13	Service Revenue		XXX

Required

The preceding 13 different accounting events are presented in general journal format. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (+), decreases (−), or does not affect (NA) each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is recorded as an example.