Question #6: For each of the following independent cases:

a) Record the transaction using the accounting equation. Be specific about account names & $ amounts.

b) Indicate the effect of each transaction on the Statement of Cash Flow (SCF). Specify which section(s) of the SCF the transaction affects and in what direction. If there is no effect on the SCF, write no effect.

1. Recognized $41,000 of salaries & wages expenses. Paid $34,000 cash. The remainder is to be paid in the following quarter.

Accounting Equation

Statement of Cash Flow