Consider the effects of the independent transactions, a through g, on a company\

Question

Consider the effects of the independent transactions, a through g, on a company's balance sheet, income statement, and statement of cash flows. Complete the table below to explain the effects and financial statement linkages. Refer to Exhibit 2.10 as a guide for the linkages.
a. The company issued common stock in exhange for cash and property and equipment.
b. The company paid cash for rent of office furnishings and facilities.
c. The company performed services for clients and immediately received cash earned.
d. The company performed services for clients and sent a bill with payment due within 60 days.
e. The company compensated an office employee with cash as salary.
f. The company received cash as partial payment on the amount owed from clients in transaction d.
g. The company paid cash in dividends.

To indicate the account increases (+), enter "1" in the answer box.
To indicate the account decreases (-), enter "2" in the answer box.
Leave other answers boxes blank, if the account is not impacted by the transaction.

Balance sheet

a. b. c. d. e. f. g.

Balance sheet

Cash Answer Answer Answer Answer Answer Answer Answer Noncash assets Answer Answer Answer Answer Answer Answer Answer Total liabilities Answer Answer Answer Answer Answer Answer Answer Contributed capital Answer Answer Answer Answer Answer Answer Answer Retained earnings Answer Answer Answer Answer Answer Answer Answer Other equity Answer Answer Answer Answer Answer Answer Answer Statement of cash flows Operating cash flow Answer Answer Answer Answer Answer Answer Answer Investing cash flow Answer Answer Answer Answer Answer Answer Answer Financing cash flow Answer Answer Answer Answer Answer Answer Answer Income statement Revenues Answer Answer Answer Answer Answer Answer Answer Expenses Answer Answer Answer Answer Answer Answer Answer Net income Answer Answer Answer Answer Answer Answer Answer Statement of stockholders' equity Contributed capital Answer Answer Answer Answer Answer Answer Answer Retained earnings Answer Answer Answer Answer Answer Answer Answer

Explanation / Answer

a. b. c. d. e. f. g. Balance sheet Cash 1 2 1 2 1 2 Noncash assets 1 1 2 Total liabilities Contributed capital 1 Retained earnings 2 1 1 2 2 Other equity Statement of cash flows Operating cash flow 2 1 2 1 Investing cash flow 1 Financing cash flow 1 2 Income statement Revenues 1 1 Expenses 1 1 Net income 2 1 1 2 Statement of stockholders' equity Contributed capital 1 Retained earnings 2 1 1 2 2

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