Exercise 13 14A (Algo) Recording events in the general journal and identifying their effect on financial statements LO 13 2 Horizontal Statements Model Performed $21,400 of services on account Collected $16,500 cash on accounts receivable Paid $4,200 cash in advance for an insurance policy Paid $1,320 on accounts payable Recorded the adjusting entry to recognize $3,900 of insurance expense Received $5,400 cash for services to be performed at a later date Purchased land for $1,440 cash Purchased supplies for $1,100 cash Required Record each of the above transactions in general journal form and then show the effect of the transaction in a horizontal statements model The first transaction is shown as an example Transaction Account Titles Debit Credit a Accounts receivable 21,400 Service revenue 21,400 Show the effect of the tra Horizontal Statements Model nsaction in a horizontal statements model The first transaction is shown as an example Note Enter any decreases to account balances and cash outflows with a minus sign In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash Not all cells require input Transaction Balance Sheet Income Statement Statement of Cash Flows Assets Liabilities Stockholders Equity Revenue Expenses Net Income a 21,400 21,400 21,400 21,400 b1 b2 c1 c2 d e f g1 g2 h1 h2 Total 21,400 0 21,400 21,400 0 21,400 0

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Exercise 13-14A (Algo) Recording events in the general journal and identifying their effect on financial statements LO 13-2 Horizontal Statements Model Performed $21,400 of services

Exercise 13-14A (Algo) Recording events in the general journal and identifying their effect on financial statements LO 13-2 Horizontal Statements Model

Performed $21,400 of services on account.
Collected $16,500 cash on accounts receivable.
Paid $4,200 cash in advance for an insurance policy.
Paid $1,320 on accounts payable.
Recorded the adjusting entry to recognize $3,900 of insurance expense.
Received $5,400 cash for services to be performed at a later date.
Purchased land for $1,440 cash.
Purchased supplies for $1,100 cash.

Required

Record each of the above transactions in general journal form and then show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example.

Transaction	Account Titles	Debit	Credit
a	Accounts receivable	21,400
	Service revenue		21,400

Show the effect of the traHorizontal Statements Modelnsaction in a horizontal statements model. The first transaction is shown as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Not all cells require input.