Chapter 1, Problem

Problem 1-1A Identifying effects of transactions on financial statements A1 P1

Identify how each of the following transactions 1 through 10 affects financial statements. For increases, place a “+” and the dollar amount in the column or columns. For decreases, place a “-“ and the dollar amount in the column or columns. Some cells may contain both an increase(-) and a decrease(-) and a decrease(-) along with dollar amounts. The first transaction is completed as an example.

Required

1. 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.
2. For the statement of cash flows, identify how each transaction affects each flows from operating activities, cash flows from investing activities, and cash flows from financing activities.