Problem 1-1A Identifying effects of transactions on financial statements LO A1, 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 Statement of Cash Flows Income Statement Net Income Transaction Total Assets Total Liabilities Total Equity +400 Operating Investing Financing Activities Activities Activities +400 1 Owner invests $400 cash in business in exchange for stock +400 2. Receives $200 cash for services provided 3. Pays $320 cash for employee wages Buys $450 of equipment on credit 5. Purchases $550 of supplies on credit 6. Buys equipment for $650 cash 7. Pays $490 on accounts payable 8. Provides $690 services on credit 9. Pays $340 cash for dividends 10. Collects $715 cash on accounts receivable