ACG2021-Principles of Financial Accounting Ch 1&2 Exercise Version 5-1 CH 1: Instructions: Record the impact of the following transactions on the Basic Accounting Equation and Cash Flows for a company that began operations on 1/1/2018. Also, categorize the entry as in the Type field: TYPE COLUMN: Asset Source (S)- Increase Assets and increase claims on Assets (i.e. Liabilities or Equity) Asset Exchange (E)- Increase Assets and decrease other Assets Asset Use (U)- Decrease Assets and decrease claims on Assets (i.e. Liabilities or Equity) 1) Borrowed $20 cash and signed a note payable in return. 2) Received $80 cash from issuing common stock. 3) Rank received $35 in revenue from performing services. 4) Paid $15 to purchase land. 5) Paid $10 in salaries to Rank's employees. 6) Rank paid $5 in cash dividends to its stockholders. Balance Sheet =Liabilities + Cash Flows Column: OA= Operating Activities IA Investing Activities FA= Financing Activities Income Statement Assets Equity Cash Land = Notes Common Payable + Stock Retained Earnings Revenues Net Cash Expenses = Income Flow Type 1) 2) 3) 4) 5) 6) TOT