Financial Statement Relationships: [5010] For each of the independent fact situations below determine the effects on each of the financial statement elements shown in the following grid. Show increases with a '+' and decreases with a '-'. 1. The firm received $120 cash for work that will be performed next year. 2. The firm signed a lease on office space for a one-year period starting today. Half of the annual rent was paid today. The remainder will be paid at the end of the lease term. The monthly rate is $20. Show the financial statement impacts for today. 3. One month of the one-year office rental has expired. [A transaction for accounting purposes.] 4. The firm bought $10 office supplies on account for later use. 'On account' means the firm will not pay the supplier until later. 5. The firm paid employees $30 for work to be done at a later date. 6. The firm's employees performed $30 work for the firm. The employees had been paid for all of this work previously (previous item). 7. The firm repaid $70 to its bank. For simplicity, assume there was no interest. 8. The firm performed $300 of consulting services for a client and collected 60% of the cash immediately. The remainder will be received at a later date as agreed upon. Balance Sheet Assets Liabilities + Owners' Equity Income Statement Revenues Expenses = Income 1. 2. 3. 4. 5. 6. 7. 8