Question
For each of the following independent cases: a) Record the transaction using the accounting equation. Be specific about account names . b) Indicate the direct
For each of the following independent cases:
a) Record the transaction using the accounting equation. Be specific about account names.
b) Indicate the direct effect of each transaction on the Statement of Cash Flow (SCF). Specify which section(s) of the SCF the transaction affects and in what direction. If there is no effect on the SCF, write no effect.
| 1. Collected $3,400 from customers on accounts. |
| Accounting Equation |
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| Statement of Cash Flow |
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| 2. The owner invested an additional $50,000 in the business |
| Accounting Equation |
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| Statement of Cash Flow |
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| 3. Estimated the doubtful accounts for the current year & recognized $3,000 as bad debt expense. The company uses the allowance method to account for bad debt. The beginning balance of the allowance is zero. |
| Accounting Equation |
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| Statement of Cash Flow |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
