The TJX Companies, Inc., parent company of T.J. Maxx, Marshalls, Home goods, and others, is “the leading off-price apparel and home fashions retailer in the United States and worldwide,” with over 4,500 stores.

a. Example: Incurred expenses; paid part in cash and part on credit.
b. Paid interest on long-term debt.
c. Sold merchandise to customers on account. (Indicate the effects of earning a revenue.)
d. Provided merchandise inventory to customers in (c) above. (Indicate the effects of using products to generate revenue.)
e. Sold equipment for cash for more than its cost.
f. Collected cash on account.
g. Used supplies.
h. Repaid long-term debt principal.
i. Received interest on investments.
j. Purchased equipment; paid part in cash and part on credit.
k. Paid cash on account to suppliers.
l. Issued additional stock for cash.
m. Paid rent to mall owners.

Required:
1. For each of the transactions, complete the tabulation, indicating the effect (+ for increase and − for decrease) of each transaction. (Remember that A = L + SE; R − E = NI; and NI affects SE through Retained Earnings.) Write NE if there is no effect. The first transaction is provided as an example.

2. For each transaction, indicate where, if at all, it would be reported on the statement of cash flows. Use O for operating activities, I for investing activities, F for financing activities, and NE if the transaction would not be included on the statement.

Transcribed Image Text:

BALANCE SHEET Transaction Assets Liabilities (a) + Stockholders' Equity INCOME STATEMENT Revenues Expenses Net Income NE +