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22200 - 8 The firm repaid money to its bank For simplicity...

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Financial Statement Relationships : [22200] For each of the independent fact situations below determine the effects on each of the financial statement elements shown in the following grid. Show increases with a '+' and decreases with a '-'. 1. The firm received cash for work that will be performed next year. 2. The firm signed a lease on office space for a one-year period starting today. Half of the cash for the entire year was paid today. The remainder will be paid at the end of the lease term. 3. The firm leased a computer for one-year starting next month and will not have to pay any cash until the computer has been in use for three months. 4. One month of the one-year office rental has expired. 5. The owners invested some cash and other assets in the firm. 6. The firm invested some of its surplus cash in office supplies for later use. 7. The firm’s employees were paid for one month’s work except for one employee who specifically requested that the month’s salary be paid to him at a later date.
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Unformatted text preview: 8. The firm repaid money to its bank. For simplicity, assume there was no interest. 9. The firm performed consulting services for a client and collected 75% of the cash immediately. The remainder will be received at a later date as agreed upon. Balance Sheet Income Statement Assets Liabilities Owners’ Equity Revenues Expenses Income 1.___________________________ _______________________ 2.___________________________ ______________________ 3.___________________________ _______________________ 4.___________________________ ________________________ 5. __________________________ ________________________ 6.___________________________ _______________________ 7.___________________________ ________________________ 8.____________________________ ________________________ 9.___________________________ ________________________...
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