The following transactions are April activities of Waves Inc., which operates several indoor water parks, offering...

 

Transcribed Image Text:

The following transactions are April activities of Waves Inc., which operates several indoor water parks, offering tubes and rafts for floating and merchandise for sale. e. Waves provided to customers merchandise inventory costing Waves $4,990. [Consider only the effect on cost of goods sold [expense] here. Do not consider sales revenue for this question.] f. Waves paid $2,300 on the electricity bill for March (recorded as an expense in March). g. Waves paid $4,500 to employees for work in April. h. Waves purchased $2,700 in insurance for coverage from May 1 to August 1. i. Waves paid $2,900 to plumbers for repairing a broken pipe in the kitchen. j. Waves received the April electricity bill for $4,100 to be paid in May. For each of the above transactions, complete the tabulation, indicating the amount and effect (+ for increase and for decrease) of each transaction. (Remember that A = L + SE; R = E=NI; and NI affects SE through Retained Earnings.) The first transaction is provided as an example. (Reductions in account balances and loss amounts should be indicated with a minus sign.) ai Balance Sheet Assets = Liabilities (4,990) Stockholders' Equity (4,990) Revenues Income Statement Expenses = Net Income (4,990) 4,990 The following transactions are April activities of Waves Inc., which operates several indoor water parks, offering tubes and rafts for floating and merchandise for sale. e. Waves provided to customers merchandise inventory costing Waves $4,990. [Consider only the effect on cost of goods sold [expense] here. Do not consider sales revenue for this question.] f. Waves paid $2,300 on the electricity bill for March (recorded as an expense in March). g. Waves paid $4,500 to employees for work in April. h. Waves purchased $2,700 in insurance for coverage from May 1 to August 1. i. Waves paid $2,900 to plumbers for repairing a broken pipe in the kitchen. j. Waves received the April electricity bill for $4,100 to be paid in May. For each of the above transactions, complete the tabulation, indicating the amount and effect (+ for increase and for decrease) of each transaction. (Remember that A = L + SE; R = E=NI; and NI affects SE through Retained Earnings.) The first transaction is provided as an example. (Reductions in account balances and loss amounts should be indicated with a minus sign.) ai Balance Sheet Assets = Liabilities (4,990) Stockholders' Equity (4,990) Revenues Income Statement Expenses = Net Income (4,990) 4,990

Answer rating: 100% (QA)

To complete the tabulation we need to analyze the effect of each transaction on the different financ... View the full answer