Estimate this approach results in a more accurate

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Unformatted text preview: timate This approach results in a more accurate This Balance Sheet Balance Transaction Analysis: Assume the following selected events Assume occurred at “Our Company.” For each event: event: Determine Determine how the accounting equation was affected. affected. Determine the effect on the financial statements. Record the event in t-accounts. Assume the beginning balance in A/R was $1,050, Assume and the beginning balance in the Allowance… account is $70 account Transaction 1 Transaction Provided services to customers for Provided $9,000, on account. $9,000, Assets = Assets + 9,000 (A/R) 9,000 Liab. n/a + C. Stock + Ret. Earn. n/a + 9,000 Income Statement: net income increased Statement of Changes in Equity: equity increased Statement Statement of Cash Flows: cash flow was not affected affected Selected T-accts for Our Co. Selected Cash xx beg. bal. Accts Rec. 1,050 (bal.) 9,000 Allow. for Doubt. Acc. (bal.) 70 Revenue 9,000 Bad Debt Expense Transaction 2 Transaction Collected $6,000 cash from account Collected receivable. receiva...
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