Delicious Doggy Treats is a new business that sells homemade dog treats and dog accessories. Analyze each of the following January transactions by identifying which accounts are impacted and how the financial statements are affected. Record each transaction in the horizontal financial statements model. 1. Delicious Doggy Treats received $40,000 cash from Rachel, the owner, and issued common stock. Stmt. of Cash Flows Balance Sheet Income Statement Assets + Acct. + Receiv. Liabilities Acct. Salaries Pay. Pay. Stockholders' Equity Common Retained Stock + Earnings Net Cash + Supplies - Equip. + Revenue Expenses Income Cash Flow 2. Delicious Doggy Treats purchased an $800 computer with cash. Stmt. of Cash Flows Balance Sheet Income Statement Assets + Acct. Receiv. + Supplies - Equip. Liabilities Acct. Salaries Pay. Pay. Stockholders' Equity Common Retained Stock Earnings Net Cash Revenue Expenses Income Cash Flow 3. Delicious Doggy Treats purchased receipt paper and pens totaling $90 and charged the purchase on account from Office Oracle. Stmt. of Cash Flows Balance Sheet Income Statement Assets Liabilities Acct. Salaries Pay. Pay. Acct. + Receiv. + Supplies + Equip. Stockholders' Equity Common Retained Stock + Earnings Revenu Net Income Cash Expenses Cash Flow 4. Delicious Doggy Treats paid Office Oracle for the purchase in transaction #3. Stmt. of Cash Flows Income Statement Balance Sheet Assets Liabilities Acct. Acct. Salaries + Receiv. + Supplies + Equip. = Pay. + Pay. Stockholders' Equity Common Retained Stock Earnings Net Cash + Revenue Expenses Income Cash Flow 5. Delicious Doggy Treats hired Lindsey as a clerk. She will earn $15 per hour and starts work next week. Stmt. of Cash Flows Balance Sheet Income Statement Assets Liabilities Acct. Salaries Pay. + Pay. Acct. Receiv. + Supplies + Equip. = Stockholders' Equity Common Retained Stock + Earnings Net Cash Revenue Expenses Income Cash Flow 6. Lindsey worked 40 hours and will be paid at the end of the month. (Ignore payroll taxes) Stmt. of Cash Flows Balance Sheet Income Statement Assets = Acct. + Receiv. + Supplies + Equip. Liabilities Acct. Salaries Pay. Pay. Stockholders' Equity Common Retained Stock Earnings Net Cash = + Revenue Expenses Income Cash Flow 7. Delicious Doggy Treats paid Lindsey for the hours she worked in transaction #6. Stmt. of Cash Flows Income Statement Assets + Balance Sheet Liabilities Acct. Salaries Equip. Pay. Acct. Stockholders' Equity Common Retained Stock Earnings Cash Net Income Receiv. Supplies Pay Revenue Expenses Cash Flow 8. Delicious Doggy Treats is hosting a dog birthday party next week. Stmt. of Cash Flows Balance Sheet Income Statement Assets + Liabilities Acct. Salaries Pay. Pay. Stockholders' Equity Common Retained Stock Earnings Acct. Receiv. + Supplies - Equip. Net Cash Revenue Expenses Income Cash Flow 9. Delicious Doggy Treats completed the dog birthday party described in transaction #8 and received $500 cash. Stmt. of Cash Flows Balance Sheet Income Statement Assets = Acct. + Receiv. + Supplies Liabilities Acct. Salaries Pay. Pay. Stockholders' Equity Common Retained Stock + Earnings Net Income Cash Equip. Revenue Expenses = Cash Flow 10. Delicious Doggy Treats received and paid the $250 electric bill. Stmt. of Cash Flows Balance Sheet Income Statement Assets Liabilities Acct. Salaries Pay. + Pay. Acct. Receiv. + Supplies + Equip. = Stockholders' Equity Common Retained Stock + Earnings Net Cash Revenue Expenses Income Cash Flow 11. Delicious Doggy Treats sold dog treats and dog accessories and billed the customer $2,000. Stmt. of Cash Flows Income Statement + Balance Sheet Assets Liabilities Acct. Acct. Salaries Pay. + + Receiv. + Supplies + Equip. = Pay. Stockholders' Equity Common Retained Stock + Earnings Net Income Cash Revenue Expenses = Cash Flow 12. Delicious Doggy Treats collected $2,000 from the customer in transaction #11. Stmt. of Cash Flows Balance Sheet Income Statement Assets Liabilities Acct. Salaries Pay. Pay. Acct. + Receiv. + Supplies + Equip. = Stockholders' Equity Common Retained Stock + Earnings Net Income Cash + Revenue Expenses Cash Flow 13. Delicious Doggy Treats paid a $1,250 dividend to Rachel, the owner. Stmt. of Cash Flows Balance Sheet Income Statement Assets + Acct. Receiv. Liabilities Acct. Salaries Pay. + Pay. Stockholders' Equity Common Retained Stock Earnings Net Income Cash Supplies - Equip. Revenue Expenses Cash Flow Use the following table to summarize the transactions recorded above. The totals will be used to create financial statements in Part 3. Stmt. of Cash Flows Income Statement + Balance Sheet Assets Liabilities Salaries Acct. + Supplies + Equip. Acct. + Pay. + Receiv. Pay. Stockholders' Equity Retaine Commo d n Stock + Earnings Net Incom Expense Cash + Revenue S e Cash Flow 1 2 3 4 5 6 7 8 9 10 11 12 13 Tot als Part 3: Create Financial Statements Calculate and fill in the correct amounts for all gray highlighted cells in the January 2020 financial statements of Delicious Doggy Treats. Use your knowledge of the financial statement relationships to verify the accuracy of your statements upon completion. Hint: Your balance sheet should total $40,400. Delicious Doggy Treats Income Statement For the Month Ended January 31, 2020 Revenue Delicious Doggy Treats Balance Sheet As of January 31, 2020 Assets Cash Accounts receivable Supplies Equipment Total Assets Expenses: Salaries expense Utilities expense Total expenses Net income Liabilities and Stockholders' Equity Liabilities: Accounts payable Salaries payable Total liabilities Delicious Doggy Treats Statement of Stockholders' Equity For the Month Ended January 31, 2020 Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 0 Beginning common stock Common stock issued Ending common stock Beginning retained earnings Net income Dividends Ending retained earnings Total stockholders' equity 0 Delicious Doggy Treats Statement of Cash Flows For the Month Ended January 31, 2020 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase in cash Cash balance on January 1, 2020 Cash balance on January 31, 2020