Problem 1
Required: Identify the financial statement on which each of the following items appears by making an X in the appropriate column. The first one is done for you!
Income Balance Statement of
Item Statement Sheet Cash Flows
Accounts Payable x
Accounts Receivable
Advertising Expense
Common Stock
Dividends
Equipment
Financing Activities
Investing Activities
Land
Operating Activities
Rent Expense
Retained Earnings
Revenue
Salaries Payable
Utility Expense
Problem 2
Required: Identify the financial statement on which each of the following items appears by making an X in the appropriate column. The first one is done for you!
1 Sold $30,000 in merchandise for cash
2 Paid $5,000 for rent with cash
3 Paid $10,000 in salaries to employees with cash
4 Sold $25,000 in merchandise and customer paid on credit
5 Collected $10,000 cash for transaction #4
6 Purchased a building for $100,000 cash
7 Paid in advance for insurance
Balance Sheet Income Statement Owner’s Net
Event No. Assets = Liabilities + Equity Revenue – Expenses = Income
1 30,000 = + 30,000 30,000 – – = 30,000
2
3
4
5
6
7