38 Chapter 1 Accounting in Business Problem Set B, locoted ot the end of Problem Set A, is provided for each problem to reinforce the learning process 3. A. Identify how each of the following separate transactions I through 10 affects financial increases, place a "+" and the dollar amount in the column or columns. For decreases, place dollar amount in the column or columns. Some cells may contain both an increase (+) and a along with dollar amounts. The first transaction is completed as an example. PROBLEM SETA and the Problem 1-1A ldentifying effects of transactions on financial statements a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and io. A1 P1 uity. For the income statement, identify how each transaction affects net income. b. For the statement of cash flows, identify how each transaction affects cash flows from operatia tivities, cash flows from investing activities, and cash flows from financing activities, b. Income Statement Balance Sheet Statement of Cash Flows OperatingInvesting Financing Total AssetsLiab. Equity Income Activities +900 Total Total Net Activities Activities 1 Owner invests $900 cash in business +900 +900 2 Recelves $700 cash for services provided 3 Pays $500 cash for employee wages 4 Incurs $100 legal costs on credit 5 Purchases $200 of supplies on credit 6 Buys equipment for $300 cash 7Pays $200 on accounts payable Provides $400 services on credit Owner withdraws $50 cash Collects $400 cash on acc ounts receivable