please if you can help me with all these questions i would be most grateful. Thank you.

Part 1 Transaction Analysis and Financial Statement impacts Greenstreet Cras is an accounting firm that provides audit, tax and coming services to clients. Greenstreet As encountered the following business transactions during 2020. For each transaction dentify which accounts are involved then summarize the impact on the financial statements. The list transaction has been completed for you as an example. Tout in preparing for the upcoming exam, a multiple choice question is provided below each transaction. This will help you see how the transactions we have been recording may be tested in a multiple choice format 1. Greenstreet CPA borrowed $65.000 from Kansas City Blank on fanuary 31, 2020 at ex interest. The loans due on January 31, 2021 Stml of Balance Sheet Income Statement Cash Flows Assets Liabilities Stockholders' Equity Acct. Auct Notes Common Retained Net Cash Recel - Supplies quip Pay Payable Stock Lamines Revenue Expenses Income Cash Flow 65,000 65,000 65,000 FA How does this transaction reflected on the statement of cash flows? A) Cash inflow in the operating section B) Cash inflow in the investing section C) Cash Inflow in the financing section D) There is no impact to the statement of cash flows 2. Greenstreet CPAs provided tax services totaleg $24.500 to Yacht Corporation an account Strat Balance Sheet Income Statement Cash Flows Assets Liabilities Stockholders' Equity Acct. Acct. Salaries Common Retained Net Cash Receiv. Supplies - Equip Pay. Pay Stock + Earnings Revenue Expenses Income Cash Flow . How does this transaction impact the assets of Greenstreet CPAS? A) Cash increases B) Revenue increases c) Accounts receivable increases DJ Retained earnings increases 3. Greenstreet CPA collected $100,000 from shareholders in exchange for stock Sum of Cash Flows Income Statement Balance Sheet Liabilities Acet Salaries Equip Pay Pay Stockholders Equity Common Retained - Earnings Net Income Cash Flow Assets Acct. Receiv Supplies Expenses Revenue . Stock Cash 1. How does this transaction impact the income statement? A) Common stock increases 3) Net income increases C) There is no impact to the income statement D) Net income decreases Stmt. of Cash Flows 4. Yacht Corporation paid $11,500 to Greenstreet CPAs for the services performed in 12. above Income Statement Stockholders' Equity Common Retained Stock Earnings Balance Sheet Assets Liabilities Acct. Acct. Salaries Receiv. - Supplies - Equip. Pay. Pay. Net Expenses Income Cash Flow Revenue Cash What is the impact to Greenstreet CPAs net income? A) Net income increases BJ Net income decreases C) Cash increases D) There is no impact to net income 2 5 Greenstreet CPA agreed to perform an audit for Computer Company later in the year Stof Cash Flows Income Statement Ausets Acct. Receivo Supplies Balance Sheet abilities Acct. Salaries Equip , Pay. Stockholders' Equity Common Retained Stock Earnings Cash Pay Net Income Revenue Expenses Cash Flow When should Greenstreet CPAs recognize revenue for this audit? A) When Greenstreet CPA agrees to perform the audit B) When Computer Company pre-pays a deposit to Greenstreet CPA C) When Greenstreet CPAs performs the audit D) Greenstreet CPAs will not record revenue for the audit since the audit is a service and not a tangible product 6 Greenstreet CPAs paid employees 59,500 for salaries Income Statement Strol Cash Flows Assets Acct. Receiv.. Supplies Balance Sheet Liabilities Acct. Salaries Pay .. Pay Stockholders' Equity Common Retained Earnings Cash Stock Net Income Revenue Expenses Cash Flow Describe the impact of this transaction to the labdities of Greenstreet CPAS, A) There is no impact to Greenstreet's abilities 8) Liabilities increase C) Liabilities decrease. Sum1 Cash Flows Income statement 7. Greentreet CPA purchased 51 300 of office supplies on account from Supply Warehouse Balance Sheet Assets Liabilities Stockholders' Equity Acet Salaries Common Retained Cash Receiv Supplies tulip Pay. Pay Stock Earnings Net income Cash Flow Act Which financial statement of Greentreet CPAs are impacted by this transaction A) Balance sheet a) Bilance sheet and income statement Ostance sheet, income statement, and statement of stockholdery equity D) Balance sheet, income statement statement of stockholders' equity, and statement of cash flows Stof Cash Flows & Greenstreet CPAs paid Supply Warehouse for the office supplies purchased in 7 above Income Statement Net Income Cash Flow Stockholders' Equity Common Retained - Earnings Revenue Balance Sheet Assets Liabilities Acct. Acct. Salaries Receiv Supplies - Equip. Pay. Pay. - Expenses Stock Cash When will Greenstreet CPAs recognise supplies expense? A) When the supplies are purchased on account BjWhen Greenstreet pays Supply Warehouse C) Companies do not recognize supplies expense. D) When the supplies are used 9 A count revealed 300 of supplies on hand Stof Cash Flows Income Statement Balance Sheet Assets Liabilities Acct Acet Salaries Receiv.. Supplies - Equip. Pay. Pay. Stockholders' Equity Common Retained Stock Earnings Net income Revenue Cash Cash Flow Expenses What amount of supplies will be shown on the December 31, 2020 balance sheet of Greenstreet CPAS? A) 5300 B) $1,300 C) $1,000 D) $1,600 10. Greenstreet CPAs received a $3.500 deposit from Computer Company for an audit to be performed later in the year. Strof Cash Flows Income Statement + Balance Sheet Assets Liabilities Acct. Acct. Unearned Receiv. Supplies - Equip. Pay - Revenue Stockholders' Equity Common Retained Stock Earnings Net Income Expenses Cash Flow Revenue Cash Which account increases when a client pays Greenstreet CPAs in advance of Greenstreet providing the service? AJ Accounts receivable B) Revenue C) Retained earnings D) Unearned revenue 11. Employees of Greenstreet CPAscanned SS.Go in salaries during the last week of My Paychecks will be remonth Stro Cash Flows Income Statement Net Balance Sheet Assets Liabilities Acet Act Salaries Receiv. Supplies Equip Pay.. Pay Stockholders' Equity Common Retained Earnings income Cash Flow Stock Revenue Expenses Cash How do expenses impact the stockholders' equity of a company? AJ Expenses decrease stockholders' equity B) Expenses increase stockholders' equity C) Expenses do not impact stockholders' equity 12. Greenstreet CPAs paid its employees for the hours worked in 11 above Strit. of Cash Flows Income Statement Stockholders' Equity Common Retained Stock Earnings Balance Sheet Assets Liabilities Acct. Acet. Salaries Receiv. Supplies Equip Pay. Pay. Net Expenses Income Cash Flow Revenue Cash This transaction decreases which account in Greenstreet CPAs accounting records? A) Salaries expense B) Retained earnings C) Accounts receivable DJ Salaries payable 13. Greenstreet CPAs completed the audit for Computer Company from transaction 810 above Strnt of Cash Flows Income Statement Balance Sheet Assets Liabilities Acct. Acct. Unearned Receiv Supplies - Equip. Pay Revenue Stockholders' Equity Common Retained - Earnings Net Income Cash Flow Revenue Expenses Stock Cash On which financial statement will unearned revenue appear? A) Income statement B) Statement of stockholders' equity C) Balance sheet DJ Statement of cash flows Strol Cash Flows 14. Greenstreet CPAs paid $2,000 for a copy machine Income Statement Stockholders' Equity Common Retained Stock Earnings Net Income Balance Sheet Assets Liabilities Acct. Acct. Salaries Receiv. Supplies - Equip Pay. . Pay Cash Flow Revenue Expenses Cash How does this transaction impact the income statement of Greenstreet CPAS? A) Expenses increase B) Revenue decreases C) Cash decreases D) There is no impact to the income statement Stof Cash Flows 15. Greenstreet CPA completed an audit and collected 54,350 from Train Inc. Income Statement Net Income cash flow Stockholders' Equity Common Retained Stock Earnings Balance Sheet Liabilities Acct Salaries Equip Pay. Assets Acct. Receiv. Supplies Revenue Expenses Pay Cash Which account on the balance sheet increases when Greenstreet CPAs provides accounting services to a client? A) Retained earnings B) Accounts payable C) Revenue D) Common stock Stmt. of Cash Flows 16. Greenstreet CPAs received a $525 electric bill and plans to pay the bill next month Income Statement Net Cash Flow Balance Sheet Liabilities Utilities Equip Pay.. Pay. Stockholders' Equity Common Retained Stock Earnings Revenue Expenses Income Assets Acct. Receiv. Supplies Acct. . Cash The balance in the utilities payable account represents: A) the amount that the utility company owes to Greenstreet CPAS. B) the amount that Greenstreet CPAs currently owes to the utility company, C) the total of all utility bills Greenstreer CPAs received this year. D) the amount that Greenstreet CPAs paid to the utility company last month. So Cash Flows 17. Greenstreet CPAs paid the electric company for the bill received in 16 above Income Statement Net Expenses-Income Cash Flow Stockholders' Equity Common Retained Stock Earnings Balance Sheet Assets Liabilities Acct Acct Utilities Receiv Supplies - Equip Pay . Revenue Pay Cash Which transaction would decrease the abilities of Greenstreet CPAS? A) Greenstreet CPAs purchases supplies on account 8) Greenstreet CPAs provides accounting services for a customer on account c) Greenstreet CPAs receives, but does not pay, a utility bill DJ Greenstreet CPAs pays a utility bill that was received and recorded last month. Stmt. of Cash Flows Income Statement 18. On September 1, Greenstreet CPAs paid $14.500 for one year of rent (September 2020 through August 2021) for its office space Net Income Cash Flow Stockholders' Equity Common Retained Stock Earnings Revenue Balance Sheet Assets Liabilities Prepaid Acet. Salaries Rent Supplies - Equip Pay. Pay. Expenses Cash Which account increases when Greenstreet CPAs pays rent in advance? A) Rent expense B) Cash CJ Prepaid rent DJ Accounts receivable 19. Greenstreet CPAs recognised rent expense for rent incurred during 2030 Strnt of Cash Flows Income Statement Balance Sheet Assets Liabilities Prepaid Acct. Salaries Rent Supplies Equip Pay .. Pay Stockholders' Equity Common Retained Stock - Earnings Net Expenses Income Cash Flow Revenue Cash How much rent expense will appear in Greenstreet CPAS income statement for the year ended December 31, 20207 A) $14,500 B) $4.833 C) $9,667 D) $1.208 20. Greenstreet CPAs paid a $12,000 dividend to its shareholders Sumt. of Cash Flows Income Statement Balance Sheet Liabilities Acct. Salaries Equip Pay .. Pay. Assets Acct. Recelv. Supplies Stockholders' Equity Common Retained Stock Earnings Net Expenses Income Cash Flow Revenue Cash Which financial statements are impacted by this transaction? A) Balance sheet and statement of cash flows B) Balance sheet and income statement C) Balance sheet, statement of stockholders' equity, and statement of cash flows D) Balance sheet, income statement, statement of stockholders' equity, and statement of cash flows 10 21. On November 30. Greentret CPAs paid $2,000 for a two- month insurance policy for December 2020 and 2021. trance is recorded similarly to rent Stro Balance Sheet Income Statement Cash Flows Assets Liabilities . Stockholders' Equity Prepaid Acet. Salaries Common Retained Net Cash Insur Supplies - Equip. Pay Pay. Stock - Earnings Revenue Expenses Income Cash Flow How will this transaction impact the 2020 financial statements of Greenstreet CPAS? A) Net Income decreases on the income statement B) Retained earnings decreases on the balance sheet. C) Cash decreases on the balance sheet D) All of the above are true. 22. Greenstreet CPAs paid $900 for an advertisement that appeared in the Kansas City Star this week. Stmtot Cash Flows Income Statement Stockholders' Equity Common Retained + Stock Earnings Balance Sheet Assets Liabilities Acct. Acct. Salaries Receiv. Supplies - Equip. Pay. Pay. Net Income Cash Flow Revenue - Expenses Cash Under U.S. Generally Accepted Accounting Principles (GAAP), what does a company record when it utilizes a resource? A) Revenue B) Expense C) Liability DJ Dividend 11 23. Greenstreet CPA recognized insurance expense for coverage utilized during 2020 Stro Cash Flows Income Statement Balance Sheet Assets Liabilities Prepaid Acct. Salaries Insur Supplies - Equip PayPay Stockholders' Equity Common Retained Stock Earnings Net ExpensesIncome Cash Flow Revenue Cash How does this transaction impact the accounting equation of Greenstreet CPAS? A) Assets increase and decrease 3) Assets and stockholders' equity decrease C) Assets and liabilities decrease D) Liabilities increase and stockholders' equity decrease 24. Greenstreet CPAs accrued 2020 interest on the Kansas City Bank loan from transaction 81 above Start of Cash Flows Income Statement Balance Sheet Liabilities Acct. Interest Equip. Payo Pay Assets Acet Receiv Supplies Stockholders' Equity Common Retained Stock Earnings Net Income Cash Flow Revenue Expenses Cash Which account increases when Greenstreet CPAs records accrued interest A) Retained earnings B) Interest payable C) Cash D) Notes payable 12 Part 2: Multiple Choice Questions 1. Bailey's Bakery collected a $40 deposit from Sandy for a birthday cake to be delivered next month. In which account will Bailey's Bakery capture this transaction? a Unearned revenue b, Accounts receivable c Revenue d. This is not an accounting event and should not be recorded in the accounting records of Bailey's Bakery 2. On October 31, 2020, Bailey's Bakery paid $24,000 for one year of rent (November 2020 through October 2021). How much rent expense will Bailey's Bakery report in their income statement for the year ended December 31, 2020? a $4,000 b. $24,000 c. $0 d. $6,000 3. Bailey's Bakery started the year with $600 of cleaning supplies on hand. They purchased $310 of supplies during the year. On December 31, 2020 a count revealed $150 of cleaning supplies remaining, How much supplies expense should appear in Bailey's Bakery's income statement for the year ended December 31, 2020? a $150 b. $160 c. $760 d. $1,060 4. Refer to question #3. How will the supplies expense recognized on December 31, 2020 impact Bailey's Bakery's balance sheet? a. Assets will increase. b. Liabilities will decrease. c. This transaction will not impact the balance sheet. d. Stockholders' equity will decrease. 13