Problem 3-28A Effect of journal entries on financial statements LO 3-2
Event | |||
No. | Account Title | Debit | Credit |
1 | Cash | xxx | |
Common stock | xxx | ||
2 | Prepaid Rent | xxx | |
Cash | xxx | ||
3 | Accounts Receivable | xxx | |
Service Revenue | xxx | ||
4 | Cash | xxx | |
Unearned Revenue | xxx | ||
5 | Cash | xxx | |
Accounts Receivable | xxx | ||
6 | Supplies | xxx | |
Accounts Payable | xxx | ||
7 | Salaries Expense | xxx | |
Cash | xxx | ||
8 | Utilities Expense | xxx | |
Cash | xxx | ||
9 | Supplies Expense | xxx | |
Supplies | xxx | ||
10 | Unearned revenue | xxx | |
Service revenue | xxx | ||
11 | Cash | xxx | |
Service Revenue | xxx | ||
12 | Dividends | xxx | |
Cash | xxx | ||
13 | Rent Expense | xxx | |
Prepaid Rent | xxx | ||
Required
The preceding 13 different accounting events are presented in
general journal format. Use a horizontal statements model to show
how each event affects the balance sheet, income statement, and
statement of cash flows. Indicate whether the event increases (+),
decreases (−), or does not affect (NA) each element of the
financial statements. Also, in the Cash Flow column, use the
letters OA to designate operating activity, IA for investing
activity, and FA for financing activity. The first event is
recorded as an example.
Answer
Event | Assets | = | Liability | + | Equity | Revenue | - | Expenses | Net Income | Cash Flow | ||
1 | + | NA | + | NA | NA | NA | FA | |||||
2 | + & - | NA | NA | NA | NA | NA | -OA | |||||
3 | + | NA | + | + | NA | + | NA | |||||
4 | + | + | NA | NA | NA | NA | OA | |||||
5 | + & - | NA | NA | NA | NA | NA | OA | |||||
6 | NA | + | - | NA | + | - | NA | |||||
7 | - | NA | - | NA | + | - | -OA | |||||
8 | - | NA | - | NA | + | - | -OA | |||||
9 | NA | NA | NA | NA | + & - | +& - | NA | |||||
10 | NA | - | + | + | NA | + | NA | |||||
11 | + | NA | + | + | NA | + | OA | |||||
12 | - | NA | - | NA | NA | NA | - FA | |||||
13 | - | NA | - | NA | + | - | NA |
FA = Financial Activities
OA = Operating Activities
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