a. Show the effect of these transactions on the financial statements using a horizontal state- ments model like the one shown here. Use a + to indicate increase, a - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first transaction is recorded as an example. Assets = Liabilities + Equity ΝΑ + Rev. ΝΑ Exp. = ΝΑ Net Inc. ΝΑ Cash Flow + FA b. Prepare the journal entries for the above transactions and post them to the appropriate T-accounts. c. Prepare the income statement, balance sheet, and statement of cash flows for 2011. d. What is the total amount of current liabilities at December 31, 2011?
a. Show the effect of these transactions on the financial statements using a horizontal state- ments model like the one shown here. Use a + to indicate increase, a - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first transaction is recorded as an example. Assets = Liabilities + Equity ΝΑ + Rev. ΝΑ Exp. = ΝΑ Net Inc. ΝΑ Cash Flow + FA b. Prepare the journal entries for the above transactions and post them to the appropriate T-accounts. c. Prepare the income statement, balance sheet, and statement of cash flows for 2011. d. What is the total amount of current liabilities at December 31, 2011?
Accounting
27th Edition
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Chapter9: Receivables
Section: Chapter Questions
Problem 9.6APR: Sales and notes receivable transactions The following were selected from among the transactions...
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