Problem 1-1A (Algo) Identifying effects of transactions on financial statements LO P1 Identify how each of the following separate transactions 1 through 10 affects financial statements. For increases, place a "+" and the dollar amount in the column or columns. For decreases, place a "-" and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example. Required: a. For the balance sheet, identify hw each transaction affects total assets, total liabilities, and total equity. For the income statement, identify how each transaction affects net income. b. For the statement of cash flows, identify how each transaction affects cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. b. Transaction Balance Sheet Total Assets 1 Owner invests $850 cash in business in exchange for stock +850 Income Statement Total Total Net Liabilities Equity Income +850 Statement of Cash Flows Operating Investing Financing Activities Activities Activites +850 2 Receives $650 cash for services provided 3. Pays $450 cash for employee wages 4. Buys $580 of equipment on credit 5. Purchases $680 of supplies on credit: 6 Buys equipment for $780 cash 7. Pays $620 on accounts payable 8. Provides $820 of services on credit 9. Pays $470 cash in dividends 10 Collects $845 cash on accounts receivable