for each one indicate what specific accounts are affected as well as the direction i 614309

Effects of transactions on the income statement and statement of cash flows

Ten transactions are listed below.

Transaction	Accounts	Direction	Net Income	Net Operating Cash Flow
1. Issued ownership securities for cash.	Cash	+
2. Purchased inventory on account.	Contributed	+
3. Sold a service on account.	Capital	NE	NE	NE
4. Received cash payments from customers on previously recorded sales.
5. Purchased equipment for cash.
6. Paid cash to reduce the wages payable account.
7. Sold a service for cash.
8. Paid off a long-term loan.
9. Made a cash interest payment.
10. Sold land for an amount greater its cost

REQUIRED:

For each one, indicate what specific accounts are affected as well as the direction (increase or decrease) of the effect. Also indicate whether the transaction would increase or decrease both net income (revenues minus expenses) on the income statement and net cash flow from operations (operating cash inflows minus operating cash outflows) on the statement of cash flows. Use the following key: increase (+), decrease (–), and no effect (NE). The first one has been completed for you.

for each one indicate what specific accounts are affected as well as the direction i 614309

REQUIRED:

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