For each Financial Transaction below, identify the effect on the Balance Sheet, Income Statement and Statement of Cash Flows. If a transaction does not effect a statement(s), then answer N/A. (1/2 point for each of the three statements.) Identify if the transaction on the statement of cash flows is an Operating activity (OA), Investing activity (IA) or a Financing Activity (FA) 1. Calculate the Depreciation on a delivery truck that costs $225,000 with a salvage value of $10,000. Assume the truck will be depreciated over 10 years using straight-line depreciation. 2. Record the effect on the financial statements for the first years of depreciation expense for the truck. Assets = Liabilities + Stockholders' Equity Statement of Cash Flow - = + Common Stock + Retained Earnings REV - EXP - DIV = + + - - 3. Record the effect on the financial statements if the truck is sold for $20,000 10 years from now. Assets = Liabilities + Stockholders' Equity Statement of Cash Flow - = + Common Stock + Retained Earnings REV - EXP - DIV = + + - - 4. Record the effect on the financial statements if a $1,000,000 Bond Payable is redeemed at maturity for face value. Assets = Liabilities + Stockholders' Equity Statement of Cash Flow = + Common Stock + Retained Earnings REV - EXP - DIV = + + - - 5. Warranty expense of $10,000 is estimated for the most current sales period of the company. Assets = Liabilities + Stockholders' Equity Statement of Cash Flow = + Common Stock + Retained Earnings REV - EXP - DIV = + + - - 6. The company settles a warranty obligation of $500 in the current period. Assets = Liabilities + Stockholders' Equity Statement of Cash Flow = + Common Stock + Retained Earnings REV - EXP - DIV = + + - - 7. 500 shares of $1 par value stock was issued for $30/share. Assets = Liabilities + Stockholders' Equity Stmt of Cash Flows + + = + + + Common Stock + + Retained Earnings REV - EXP - DIV 8. 200 shares of the companys own stock was repurchased by the company in the open market at a price of $25/share. Assets = Liabilities + Stockholders' Equity Stmt of Cash Flows + + = + + + Common Stock - + Retained Earnings REV - EXP - DIV 9. A 5% common stock dividend on 2,000 shares outstanding with a par value of $1 was declared. The current market value of the stock is $35/share. Assets = Liabilities + Stockholders' Equity Stmt of Cash Flows + + = + + + Common Stock + + Retained Earnings REV - EXP - DIV 10. Amortization Expense of $8,500 is recorded for an Intangible asset. Assets = Liabilities + Stockholders' Equity Statement of Cash Flow = + Common Stock + Retained Earnings REV - EXP - DIV = + + - -

For each Financial Transaction below, identify the effect on the Balance Sheet, Income Statement and Statement of Cash Flows. If a transaction does not effect a statement(s), then answer N/A. (1/2 point for each of the three statements.)

Identify if the transaction on the statement of cash flows is an Operating activity (OA), Investing activity (IA) or a Financing Activity (FA)

1. Calculate the Depreciation on a delivery truck that costs $225,000 with a salvage value of $10,000. Assume the truck will be depreciated over 10 years using straight-line depreciation.

2. Record the effect on the financial statements for the first years of depreciation expense for the truck.

Assets

=

Liabilities

+

Stockholders' Equity

Statement of Cash Flow

-

=

+

Common Stock

+

Retained Earnings

REV

-

EXP

-

DIV

=

+

+

-

-

3. Record the effect on the financial statements if the truck is sold for $20,000 10 years from now.

Assets

=

Liabilities

+

Stockholders' Equity

Statement of Cash Flow

-

=

+

Common Stock

+

Retained Earnings

REV

-

EXP

-

DIV

=

+

+

-

-