Home insert Design Univers Copy Format Painter Br Edmonds_JFAB_16.CHO.docx - Home insert Design Univers Copy Format Painter Br Edmonds_JFAB_16.CHOZ

Home insert Design Univers Copy Format Painter Br Edmonds_JFAB_16.CHO.docx

This preview shows page 1 - 4 out of 7 pages.

Image of page 1
Home insert Design Univers Copy Format Painter Br Edmonds_JFAB_16.CHOZ, Working Papers (1) - Compatibility Mode - Saved - Gecer, lado Layout References Mailings Review ww Help 1 A A A A E E 7 AaB Col. AaBbc AaBbc AaBbcc AaBbc Bbc ab X, * A-D-A- E 12- - Emphasis T Heading 1 Heading 2 Heading 3 T Heading 4 T Headings Styles Paragraph Font LO 2-1, 2-2,2-3, 2-4 Exercise 2-9B Effect of accounts receivable and accounts payable transactions on financial statements The following events apply to Parker and Montes, a public accounting firm, for the Year I accounting period: 1. Performed $96,000 of services for clients on account. 2. Performed $65,000 of services for cash. 3. Incurred $45,000 of other operating expenses on account. 4. Paid $26,000 cash to an employee for salary. 5. Collected $70,000 cash from accounts receivable. 6. Paid $38,000 cash on accounts payable. 7. Paid a $10,000 cash dividend to the stockholders. 8. Accrued salaries were $3.000 at the end of Year 1. Required a. Show the effects of the events on the financial statements using a horizontal financial statements model like the following one. In the Statements of Cash Flows column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for not change in cash. Use NA to indicate the element is not affected by the event. The first event is recorded as an example. Balance Sheet Income Statement Statement of Cash Flows Event Assets Liabilities + Equity Accts. Cash + Rec. = Accts. Pay. + Sal. Pay. + Ret. Earn. NA + 96,000 - NA + NA + 96,000 Rev. - 96,000 - Exp. - Net Inc. NA = 96.000 NA
Image of page 2
Focus FG 1975 words e E L 2 0 W Tung here to search
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 7 pages?

  • Spring '19
  • Prof. Adnan Hamideh

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes