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Applying Financial Statement Linkages to Understand Transactions Consider the effects of the independent transactions, a through g, on a company's balance sheet, income statement, and statement of cash flows. Complete the table below to explain the effects and financial statement linkages. Refer to Exhibit 2.10 as a guide for the linkages. a. The company issued common stock in exhange for cash and property and equipment. b. The company paid cash for rent of office furnishings and facilities. c. The company performed services for clients and immediately received cash earned. d. The company performed services for clients and sent a bill with payment due within 60 days. e. The company compensated an office employee with cash as salary. f. The company received cash as partial payment on the amount owed from clients in transaction d. g. The company paid cash dividends. f. To indicate the account increases (+), enter "1" in the answer box. To indicate the account decreases (-), enter "2" in the answer box. Leave other answers boxes blank, if the account is not impacted by the transaction. c. d. e. Balance sheet Cash Noncash assets Total liabilities Contributed capital Retained earnings Other equity Statement of cash flows Operating cash flow Investing cash flow Financing cash flow Income statement Revenues Expenses Net income Statement of stockholders' equity Contributed capital Retained earnings Activate Windows Go to Settings to activate Window Applying Financial Statement Linkages to Understand Transactions Consider the effects of the independent transactions, a through g, on a company's balance sheet, income statement, and statement of cash flows. Complete the table below to explain the effects and financial statement linkages. Refer to Exhibit 2.10 as a guide for the linkages. a. The company issued common stock in exhange for cash and property and equipment. b. The company paid cash for rent of office furnishings and facilities. c. The company performed services for clients and immediately received cash earned. d. The company performed services for clients and sent a bill with payment due within 60 days. e. The company compensated an office employee with cash as salary. f. The company received cash as partial payment on the amount owed from clients in transaction d. g. The company paid cash dividends. f. To indicate the account increases (+), enter "1" in the answer box. To indicate the account decreases (-), enter "2" in the answer box. Leave other answers boxes blank, if the account is not impacted by the transaction. c. d. e. Balance sheet Cash Noncash assets Total liabilities Contributed capital Retained earnings Other equity Statement of cash flows Operating cash flow Investing cash flow Financing cash flow Income statement Revenues Expenses Net income Statement of stockholders' equity Contributed capital Retained earnings Activate Windows Go to Settings to activate Window
