Indicate how each event affects the financial statements model. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts.

 

Increase = IDecrease = DNo Effect = NA

 

(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element, which is offset by a decrease in that same element.)

 

1) Banks Co. performed $5,000 of services for customers on account.

 

Assets	Liabilities	Equity	Revenues	Expenses	Net Income	Stmt of Cash Flows
I	NA	I	I	NA	I	NA

 

2) Todd Co. collected $2,000 cash from customers in partial settlement of its accounts receivable.

 

Assets	Liabilities	Equity	Revenues	Expenses	Net Income	Stmt of Cash Flows
NA	NA	NA	NA	NA		I

 

3) Angstrom Co. provided $2,600 of services for a customer who paid $1,000 cash immediately and promised to pay an additional $1,600 one month later.

 

Assets	Liabilities	Equity	Revenues	Expenses	Net Income	Stmt of Cash Flows

Answer rating: 100% (QA)

1 Banks Co performed 5000 of services for customers on account Assets Liabilities Equity Revenues Ex... View the full answer