2 Excel Instructions 3 ONLY use cell referencing and formulas, do not type amounts! 4 Using cell referencing only, report amounts in the appropriate columns 5 Using formulas only, create totals 6 Problem Instructions In the accounting equation record decreases as negative and increases as positive. Remember, it is possible for transactions to increase and decrease the same side of the accounting equation. In the income statement, record the appropriate amounts as positive or negative. Record the appropriate amounts in the business activities as absolute values (positive amounts only). 7 Income Statement Business Activities 8 Accounting Equation and Balance Sheet Total Total Total Assets Liabilities Equity Amount Net Income Operating Investing Financing Activities Activities Activities $8,000 $6,000 $1,250 $10,000 $525 $3,000 $2,750 $150 Transaction 9 10 Owner invests cash in business 11 Client pays cash for services completed 12 Pays cash for employee wages 13 Buys of equipment with a note payable 14 Purchases of supplies on account 15 Pays rent for the current month 16 Buys equipment for cash Writes a check for the month's utilities (pays 17 cash) 18 Pays on accounts payable 19 Provides services on account 20 Owner withdraws cash 21 Collects cash on accounts receivable 22 Totals 23 24 Total Assets 25 Total Liabilities and Equity 26 $525 $1,500 $2,000 $1,500 27 Net Income