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The items making up the statement of financial position of Rankin Truck Rental at December 31 are listed below in tabular form similar to the illustration of the accounting equation in Exhibit 2-11. Assets Liabilities + Equity Accounts Office Notes Accounts Share Cash + Receivable + Trucks + Equipment = Payable + Payable + Capital Balances $9,500 $13,900 $68,000 $3,800 $20,000 $10,200 $65,000 During a short period after December 31, Rankin Truck Rental had the following transactions: 1. Bought office equipment at a cost of $2,600. Paid cash. 2. Collected $5,400 of accounts receivable. 3. Paid $2,700 of accounts payable. 4. Borrowed $10,000 from a bank. Signed a note payable for that amount. 5. Purchased two trucks for $30,000. Paid $14,000 cash and signed a note payable for the balance. 6. Sold additional shares to investors for $86,000. b. Record the effects of each of the six transactions in the preceding tabular arrangement. Show the totals for all columns after each transaction. (Only enter the dollar amount of the transactions. Indicate the negative effect by entering"-" before the amount. Omit the "$" sign in your response.) Assets Liabilities Accounts Office Accounts Cash Receivable + Trucks Equipment = Notes Payable + Payable December 31 balances $ 9,500 $ 13,900 $ 68,000 $ 3,800 S 20,000 $ 10,200 (1) Equity + $ Share Capital 65,000 Balances A S $ $ GA $ $ $ $ (2) 10111 10. Balances S $ 02 02 $ A (3) Balances $ $ $ GA $ S S $ (4) Balances GA $ S 02 S (5) Balances 5 A $ GA $ A (6) Balances $ $ A $ A 04 An inexperienced accountant for Yarnell Company prepared the following income statement for the month of August 2013 YARNELL COMPANY August 31, 2013 Revenues: Services provided to customers $ 14,000 Investment by shareholders 5,000 Loan from bank 15,000 $ 34,000 Expenses: Payments to long-term creditors $ 11,700 Expenses required to provide services to customers 7,500 Purchase of land 16,000 35,200 Loss $ 1,200 Prepare a revised income statement in accordance with generally accepted accounting principles. (Input all amounts as positive values. Omit the "$" sign in your response.) YARNELL COMPANY Income Statement For the Month Ended August 31, 2013 (Click to select) $ (Click to select) (Click to select) $ An inexperienced accountant for Yarnell Company prepared the following income statement for the month of August 2013 YARNELL COMPANY August 31, 2013 Revenues Services provided to customers $ 12,000 Investment by shareholders 3,000 Loan from bank 12,000 $ 27,000 Expenses: Payments to long-term creditors $ 15,000 Expenses required to provide services to customers 9,400 Purchase of land 18,000 42,400 Loss $ 15,400 Based on the information prepare a statement of cash flows in a form consistent with generally accepted accounting principles. You may assume all transactions were in cash and that the beginning cash balance was $19,000. (Amounts to be deducted should be indicated with a minus sign. Omit the "S" sign in your response.) YARNELL COMPANY Statement of Cash Flows For the Month Ended August 31, 2013 Cash flows from operating activities: (Click to select) $ (Click to select) Net cash (Click to select) operating activities Cash flows from investing activities: (Click to select) Cash flows from financing activities: (Click to select) (Click to select) (Click to select) $ (Click to select) Cash balance, August 1, 2013 II. Cash balance, August 31, 2013 19 Identify whether a debitor credit yields the indicated change for each of the following accounts. a. To increase Store Equipment b. To increase Land c. To decrease Cash d. To increase Utilities Expense e. To increase Fees Earned f. To decrease Unearned Revenue g. To decrease Prepaid Insurance h. To increase Notes Payable i. To decrease Accounts Receivable j. To increase Owner Capital (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) v (Click to select)