LOJ RELIUCU OLUCU JONES OL UIC CHU ULIE OLLUT Venuu. b. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (+), decreases (-), or does not affect (NA) each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is shown as an example, Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Use a horizontal statements model to show how each event affects the balance sheet, Income statement, and statement of cash flows. Indicate whether the event increases (+), decreases (-), or does not affect (NA) each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is shown as an example. (In the Cash Flows column, select "NA" if there is no effect.) Show less No Assets Liabilities Expenses Equity Revenue NA Net Income NA 9 NA + NA NA NA . - (2) (3) - NA 3 NA NA NA + NA NA NA + Cash Flows FA NA OA NA NA . 3 NA + NA NA NA - (5) (6) (7) OOOOO NA NA - NA NA . - NA 03 NA NA (1) Acquired cash from the issue of common stock. (2) Provided services for cash (3) Pald cash for salaries expense, (4) Purchased supplies for cash. (5) Paid in advance for two-year lease on office space. (6) Provided services on account. Recognized expense for prepaid rent that had been used up by the end of the accounting period. (8) Recorded accrued salaries at the end of the accounting period. b. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (+), decreases (-), or does not affect (NA) each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is shown as an example. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions. Event Account Debited (1) (2) (3) (4) (5) ololo Acquired cash from the issue of common stock Provided services for cash Paid cash for salaries expense. Purchased supplies for cash Paid in advance for two-year lease on office space. Provided services on account. Recognized expense for prepaid rent that had been used by the end of the accounting period. Recorded accrued salaries at the end of the accounting period. Cash Cash Salaries expense Supplies Prepaid rent Accounts receivable expense Salaries expense Account Credited Common stock Service revenue Cash Cash Cash (6) (7) (8) Service revenue Prepaid rent Salarios payable
