Using the Transaction Analysis table provided, analyze the effect of the transactions listed below on the extended Accounting Equation Anoud started a Consulting service business on January 2021. A summary of January transactions is given below. a. Anoud invested AED 70,000 cash to start the business. b Office equipment of AED 8,500 purchased was on credit. c The company purchased of office supplies for cash AED 9,000. d The company paid AED 3,500 cash for rent of office space for the month. e. The company made a partial payment of AED 4,000 cash on the equipment purchased in transaction C. f. Anoud withdrew AED 2,500 cash from the company for personal use. g The company provided service for a client and immediately collected cash AED 12,000. h The company paid AED 4,000 cash for the office secretary's salaries.

Using the Transaction Analysis table provided, analyze the effect of the transactions listed below on the extended Accounting Equation Anoud started a Consulting service business on January 2021. A summary of January transactions is given below. a. Anoud invested AED 70,000 cash to start the business. b Office equipment of AED 8,500 purchased was on credit. c The company purchased of office supplies for cash AED 9,000. d The company paid AED 3,500 cash for rent of office space for the month. e. The company made a partial payment of AED 4,000 cash on the equipment purchased in transaction C. f. Anoud withdrew AED 2,500 cash from the company for personal use. g The company provided service for a client and immediately collected cash AED 12,000. h The company paid AED 4,000 cash for the office secretary's salaries.

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Description: Analysis the effect of the transactions listed on the accounting equation Using the Transaction Analysis table provided, analyze the effect of the transactions listed below on the extended Accounting Equation.Anoud started a Consulting service busine

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 5PA: Inner Resources Company started its business on April 1, 2019. The following transactions occurred...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
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You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information: Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 Note: The tax rate is 32% Required: 1. Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about…
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