A number of business transaction carried out by smalling manufacturing company are as follows Borrowed money from a bank Sold land for cash at a price equal to its cost Paid a liability Purchases a computer on credit The owner invested cash in the business Purchase office equipment on cash Collected an account receivable Indicate the effects of each these transaction on the total amount of the company’s assets, liabilities and owner’s equity. Organize your answer in tabular form using the following column heading and the code letter I for increase D for decrease and NE for no effect the answer for transaction a is provided as an example Transaction Assets = liabilities + owner’s equity I = I
A number of business transaction carried out by smalling manufacturing company are as follows Borrowed money from a bank Sold land for cash at a price equal to its cost Paid a liability Purchases a computer on credit The owner invested cash in the business Purchase office equipment on cash Collected an account receivable Indicate the effects of each these transaction on the total amount of the company’s assets, liabilities and owner’s equity. Organize your answer in tabular form using the following column heading and the code letter I for increase D for decrease and NE for no effect the answer for transaction a is provided as an example Transaction Assets = liabilities + owner’s equity I = I
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 2EB: In which section of the statement of cash flows would each of the following transactions be...
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A number of business transaction carried out by smalling manufacturing company are as follows
- Borrowed money from a bank
- Sold land for cash at a price equal to its cost
- Paid a liability
- Purchases a computer on credit
- The owner invested cash in the business
- Purchase office equipment on cash
- Collected an account receivable
Indicate the effects of each these transaction on the total amount of the company’s assets, liabilities and owner’s equity. Organize your answer in tabular form using the following column heading and the code letter I for increase D for decrease and NE for no effect the answer for transaction a is provided as an example
Transaction Assets = liabilities + owner’s equity
I = I
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