Effect of transactions on the elements of financial statements Required Identify each of the following independent transactions

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Effect of transactions on the elements of financial statements

Required
Identify
each of the following independent transactions as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event affects assets, liabilities, stockholders€™ equity, net income, and cash flow by placing a + for increase €“ for decrease, or NA for not affected under each of the categories. The first event is recorded as an example.

Effect of transactions on the elements of financial statements Required Identify

a. Collected cash from accounts receivable.
b. Recovered an uncollectible account that was previously written off.
c. Paid cash for land.
d. Paid cash for other operating expenses.
e. Sold merchandise at a price above cost. Accepted payment by credit card. The credit card company charges a service fee. The receipts have not yet been forwarded to the credit card company.
f. Sold land for cash at its cost.
g. Paid cash to satisfy salaries payable.
h. Submitted receipts to the credit card company (see e above) and collected cash.
i. Loaned Carl Maddox cash. The loan had a 5 percent interest rate and a one-year term to
maturity.
j. Paid cash to creditors on accounts payable.
k. Accrued three months€™ interest on the note receivable (see i above).
l. Provided services for cash.
m. Paid cash for salaries expense.
n. Provided services on account.
o. Wrote off an uncollectible account (use allowancemethod).

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For  book-img-for-question

Survey Of Accounting

ISBN: 9780077503956

1st Edition

Authors: Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay

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