Identifying transaction type and effect on the financial statements
Identify whether each of the following transactions is an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also show the effects of the events on the financial statements using the horizontal statements model. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the financial statements. In the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first two transactions have been recorded as examples.
a. Acquired cash from the issue of common stock.
Â b. Purchased land for cash.
Â c. Paid cash advance for rent on office space.
Â d. Collected cash from accounts receivable.
Â e. Performed services for cash.
Â f. Purchased a building with part cash and issued a note payable for the balance.
Â g. Paid cash for operating expenses.
Â h. Paid cash for supplies.
Â i. Paid a cash dividend to the stockholders.
Â j. Incurred operating expenses on account.
Â k. Paid cash on accounts payable.
Â l. Received cash advance for services to be provided in the future.
Â m. Recorded accrued salaries.
Â n. Performed services on account.
Â o. Adjusted books to reflect the amount of prepaid rent expired during the period.
Â p. Paid cash for salaries accrued at the end of a prior period.