The preceding 13 different accounting events are presented in general journal format. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (+), decreases (−), or does not affect (NA) each element of the financial statements. Also, in the Statement of Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is recorded as an example.

Transcribed Image Text:

Event No. Account Title Debit Credit 1. Cash XXX Common Stock XXX 2. Prepaid Rent XXX Cash XXX 3. Accounts Receivable XXX Service Revenue хXX 4. Cash XXX Unearned Revenue XXX Cash 5. хX Accounts Receivable XXX 6. Supplies Accounts Payable XXX XXX 7. Salaries Expense Cash XXX XXX Utilities Expense Cash 8. XXX XXX 9. Supplies Expense Supplies хXX XXX 10. Unearned Revenue хXX Service Revenue XXX Cash 11. хXX Service Revenue XXX 12. Dividends хXX Cash XXX Rent Expense Prepaid Rent 13. XXX хXX Balance Sheet Income Statement Statement of Cash Assets Llab. Stk. Equlty Exp. = Net Inc. Rev. Flows NA NA NA NA + FA