Identify and analyze the transaction related to the sales during 2015. Assume that all of Walgreen's sales are on account. Activity Operating Accounts Accounts Receivable Increase, Sales Increase Statement(s) Balance Sheet and Income Statement Feedback Check My Work 1) Determine activity. 1a) Financing activities are transactions (other than payment of interest) involving borrowing from creditors or repaying creditors. This also includes transactions with the company's owners. Businesses borrow money or raise money from selling of their stock. 1b) Investing activities are obtaining money by building up operations or purchasing investment products such as stocks, bonds and annuities. 1c) Operating activities are the sale of products and/or services, and the costs incurred to operate a business 2) Determine financial statement accounts affected, balance sheet or income statement. Determine accounts and amount of increases/decreases. 3) Balance Sheet accounts: Assets = Liabilities + Stockholders' Equity. Income Statement accounts: Revenues - Expenses = Net Income. (Equations must stay in balance) 4) Record receipt of cash increase) for sales revenue (increase). 5) Record revenue earned on account with accounts receivable (increase) for sales revenue (increase). How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "O". If the effect is negative, use the minus sign. Balance Sheet Income Statement Stockholders' + Equity Assets Liabilities + Revenues Expenses Accounts Receivable -96,595 x No Entry 6,849 X Sales -26,924 x No Entry Identify and analyze the transaction related to the collection of accounts receivable during 2015. Activity Operating Accounts Cash Increase, Accounts Receivable Decrease Statement(s) Balance Sheet only Feedback Check My Work 1) Determine activity. 1a) Financing activities are transactions (other than payment of interest) involving borrowing from creditors or repaying creditors. This also includes transactions with the company's owners. Businesses bor money or raise money from selling of their stock. 1b) Investing activities are obtaining money by building up operations or purchasing investment products such as stocks, bonds and annuities. 1c) Operating activities are the sale of products and/or services, and the costs incurred to operate a business. 2) Determine financial statement accounts affected, balance sheet or income statement. Determine accounts and amount of increases/decreases. 3) Balance Sheet accounts: Assets = Liabilities + Stockholders' Equity. Income Statement accounts: Revenues - Expenses = Net Income. (Equations must stay in balance) 4) Record receipt of cash increase) for sales revenue (increase). 5) Record collection of accounts receivable for 2012 sales with receipt of cash (increase) with collection of accounts receivable (decrease). How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "0". If the effect is negative, use the minus sign. Balance Sheet Income Statement Assets Liabilities + Revenues Expenses Stockholders' + Equity 0 No Entry 0 No Entry Cash o7 -6,948 X O X No Entry No Entry 0 0 No Entry No Entry Accounts Receivable L Walgreens Boots Alliance's Sales, Cost of Goods Sold, and Gross Profit The following information was summarized from the consolidated balance sheets of Walgreens Boots Alliance, Inc. and Subsidiaries (the company created with the combination of Walgreens and Boots Alliance) as of August 31, 2015 and 2014 and the consolidated statements of earnings for the years ended August 31, 2015 and 2014. All amounts are from Walgreens Boots Alliance's 2015 Form 10-K. (millions of dollars) Accounts receivable, net Cost of sales Inventories Net sales 2015 2014 $6,8493,218 76,520 54,823 8,678 6,076 103,444 76,392 Required: Identify and analyze the transaction related to the sales during 2015. Assume that all of Walgreen's sales are on account. Activity Operating Accounts Accounts Receivable Increase, Sales Increase Statement(s) Balance Sheet and Income Statement Feedback Check My Work 1) Determine activity. 1a) Financing activities are transactions (other than payment of interest) involving borrowing from creditors or repaying creditors. This also includes transactions with the company's owners. Businesses borrow money or raise money from selling of their stock. 1b) Investing activities are obtaining money by building up operations or purchasing investment products such as stocks, bonds and annuities. 1c) Operating activities are the sale of products and/or services, and the costs incurred to operate a business 2) Determine financial statement accounts affected, balance sheet or income statement. Determine accounts and amount of increases/decreases. 3) Balance Sheet accounts: Assets = Liabilities + Stockholders' Equity. Income Statement accounts: Revenues - Expenses = Net Income. (Equations must stay in balance) 4) Record receipt of cash increase) for sales revenue (increase). 5) Record revenue earned on account with accounts receivable (increase) for sales revenue (increase). How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "O". If the effect is negative, use the minus sign. Balance Sheet Income Statement Stockholders' + Equity Assets Liabilities + Revenues Expenses Accounts Receivable -96,595 x No Entry 6,849 X Sales -26,924 x No Entry Identify and analyze the transaction related to the collection of accounts receivable during 2015. Activity Operating Accounts Cash Increase, Accounts Receivable Decrease Statement(s) Balance Sheet only Feedback Check My Work 1) Determine activity. 1a) Financing activities are transactions (other than payment of interest) involving borrowing from creditors or repaying creditors. This also includes transactions with the company's owners. Businesses bor money or raise money from selling of their stock. 1b) Investing activities are obtaining money by building up operations or purchasing investment products such as stocks, bonds and annuities. 1c) Operating activities are the sale of products and/or services, and the costs incurred to operate a business. 2) Determine financial statement accounts affected, balance sheet or income statement. Determine accounts and amount of increases/decreases. 3) Balance Sheet accounts: Assets = Liabilities + Stockholders' Equity. Income Statement accounts: Revenues - Expenses = Net Income. (Equations must stay in balance) 4) Record receipt of cash increase) for sales revenue (increase). 5) Record collection of accounts receivable for 2012 sales with receipt of cash (increase) with collection of accounts receivable (decrease). How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "0". If the effect is negative, use the minus sign. Balance Sheet Income Statement Assets Liabilities + Revenues Expenses Stockholders' + Equity 0 No Entry 0 No Entry Cash o7 -6,948 X O X No Entry No Entry 0 0 No Entry No Entry Accounts Receivable L Walgreens Boots Alliance's Sales, Cost of Goods Sold, and Gross Profit The following information was summarized from the consolidated balance sheets of Walgreens Boots Alliance, Inc. and Subsidiaries (the company created with the combination of Walgreens and Boots Alliance) as of August 31, 2015 and 2014 and the consolidated statements of earnings for the years ended August 31, 2015 and 2014. All amounts are from Walgreens Boots Alliance's 2015 Form 10-K. (millions of dollars) Accounts receivable, net Cost of sales Inventories Net sales 2015 2014 $6,8493,218 76,520 54,823 8,678 6,076 103,444 76,392 Required