Question #6.3: 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. Sold merchandize that has a cost of $28,000 for $35,000. The customer promised to pay the full amount at the end of the coming month.

Accounting Equation

Statement of Cash Flow