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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 how 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. a. b. Balance Sheet Transaction Total Total Total Assets Liabilities Equity Income Statement Net Income Statement of Cash Flows 1. Owner invests $500 cash in business in exchange for stock +500 +500 Operating Investing Financing Activities Activities Activities +500 2. Receives $300 cash for services provided +300 +300 +300 +300 3. Pays $100 cash for employee wages -100 -100 -100 -100 4. Buys $230 of equipment on credit 5. Purchases $330 of supplies on credit 6. Buys equipment for $430 cash 7. Pays $270 on accounts payable +330 -300 +/-430 -430 +470 +470 +470 -120 -120 +495 8. Provides $470 of services on credit 9. Pays $120 cash in dividends 10. Collects $495 cash on accounts receivable +/-495