Analyzing the Effect of Transactions, assignment help

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Business Finance

Description

Purpose of Assignment

The purpose of this assignment is to help you become familiar with examining transactions and how it affects the balance sheet.

Assignment Steps

Resources: Financial Accounting: Tools for Business Decision Making

Write a minimum 150-word response to each of the following scenarios from Exercise E3-1 in Financial Accounting (p. 132) describing the effect of each transaction on assets, liabilities, and stockholder's equity:

  • Selected transactions for Thyme Advertising Company, Inc.
    • Issued common stock to investors in exchange for cash received from investors.
    • Paid monthly rent.
    • Received cash from customers when service was performed.
    • Billed customers for services performed.
    • Paid dividend to stockholders.
    • Incurred advertising expense on account.
    • Received cash from customers billed in (4).
    • Purchased additional equipment for cash.
    • Purchased equipment on account.

Use the Excel® spreadsheet to record your answers and submit with your responses.

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E3-1 Analyze transactions Thyme Advertising 1. 2. 3. 4. 5. 6. 7. 8. 9. Issued common stock to investors in exchange for cash received from investors. Paid monthly rent. Received cash from customers when service was performed. Billed customers for services performed. Paid dividend to stockholders. Incurred advertising expense on account. Received cash from customers billed in (4). Purchased additional equipment for cash. Purchased equipment on account. Instructions (a) Prepare a tabular analysis of the transactions using these column headings below. Each row repre Specific accounts impacted and classification as Asset, Liability and Stockholder Equity are noted. as increase or decrease. See transaction #1 example below. (b) Write a minimum 150-word response to each of the following scenarios describing the effect of eac stockholder's equity. You can add your analysis comments below the tabular analysis or attach a s NOTE: Enter the word increase or decrease for Asset, Liability, Stockholder Equity in appropriate Thyme Advertising Assets 1. 2. 3. 4. 5. 6. 7. 8. Cash Increase + Accounts Receivable + Supplies = + Equipment = 9. om investors. eadings below. Each row represents the nine transactions above. d Stockholder Equity are noted. Indicate the impact to the account classification rios describing the effect of each transaction on assets, liabilities, and he tabular analysis or attach a separate Word file and submit both files. kholder Equity in appropriate columns below . yme Advertising Liabilities Accounts Payable + Stockholders' Equity Common + Stock + Revenue Increase - Expenses This row is what you are a - Dividends This row is provided for il Assets increase and Stockh This row is provided for illustration purposes to show what types of accounts are impacted under each cla pacted under each classification above for each transaction. The account impacts could be referenced in yo uld be referenced in your written analysis.
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Explanation & Answer

Sorry for the delay.Here is the detailed answer in docs file with the excel sheet.

E3-1 Analyze transactions
Thyme Advertising
1.
2.
3.
4.
5.
6.
7.
8.
9.

Issued common stock to investors in exchange for cash received from investors.
Paid monthly rent.
Received cash from customers when service was performed.
Billed customers for services performed.
Paid dividend to stockholders.
Incurred advertising expense on account.
Received cash from customers billed in (4).
Purchased additional equipment for cash.
Purchased equipment on account.

Instructions
(a)
Prepare a tabular analysis of the transactions using these column headings below. Each row repre
Specific accounts impacted and classification as Asset, Liability and Stockholder Equity are noted.
as increase or decrease. See transaction #1 example below.
(b)
Write a minimum 150-word response to each of the following scenarios describing the effect of eac
stockholder's equity. You can add your analysis comments below the tabular analysis or attach a s
NOTE: Enter the word increase or decrease for Asset, Liability, Stockholder Equity in appropriate

Thyme Advertising
Assets

1.

Cash
Increase

2.

Decrease

3.

Increase

4.
5.

+

Accounts
Receivable

+ Supplies

=
+

Equipment

Increase
Decrease

6.
7.

Increase

8.

Decrease

Decrease
Increase

=

9.

Increase

om investors.

eadings below. Each row represents the nine transactions above.
d Stockholder Equity are noted. Indicate the impact to the account classification

rios describing the effect of each transaction on assets, liabilities, and
he tabular analysis or attach a separate Word file and submit both files.
kholder Equity in appropriate columns below .

yme Advertising
Liabilities
Accounts
Payable

+

Stockholders' Equity

Common
+
Stock
+ Revenue
Increase

-

Expenses

This row is what you are a
-

Dividends This row is provided for il
Assets increase and Stockh

Decrease
Increase
Increase
Decrease
Increase

Decrease

Increase

This row is provided for illustration purposes to show what types of accounts are impacted under each cla

pacted under each classification above for each transaction. The account impacts could be referenced in yo

uld be referenced in your written analysis.


Running head: EFFECT OF TRANSACTIONS

Analyzing Effect of Transactions
Name
University Name
Course Name
Instructor Name
Aug 12, 2017

1

EFFECT OF TRANSACTIONS

2
Introduction...


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