Question
Consider the effects of the independent transactions, a through d, on a companys balance sheet, income statement, statement of cash flows, and statement of stockholders
Consider the effects of the independent transactions, a through d, on a companys balance sheet, income statement, statement of cash flows, and statement of stockholders equity.
a. The company purchased inventory on credit.
b. The company paid cash for rent expense.
c. The company collected cash from clients previously billed for goods sold.
d. The company paid cash for inventory purchased in Transaction a.
Complete the table below to explain the effects and financial statement linkages. Use + to indicate the account increases and to indicate the account decreases.
Balance Sheet | A | B | C | D | |
Cash | |||||
Noncash Assets | |||||
Total Assets | |||||
Total Liabilities | |||||
Contributed Capital | |||||
Retained Earnings | |||||
Other Equity | |||||
Statement of Cash flows | |||||
Operating Cash flow | |||||
Investing Cash flow | |||||
Financing cash flow | |||||
Income Statement | |||||
Revenues | |||||
Expenses | |||||
Net Earnings | |||||
Statement of Stockholders equity | |||||
Contributed Capital | |||||
Retained earnings | |||||
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