Using the below framework, indicate the effect of each of the following transactions Recall Assets Liabilities Equity , and Cash Noncash assets Liabilities Contributed capital Retained earnings Accumulated OCI Example if the firm sold for a product for $225 on account which costs $170 to manufacture, Cash Noncash assets Red CC RE AOCI 225 170 225 170 The firm collected a receivable of $300 from the customer on an account Answer Cash Noncash assets Red CC RE AOCI The firm purchased for cash $110 of raw materials Answer Cash Noncash assets Red CC RE AOCI The firm recognized depreciation $50 for its assets for the period Answer Cash Noncash assets Red CC RE AOCI The firm paid cash dividends of $200 Answer Cash Noncash assets Red CC RE AOCI The firm purchased on account $130 of raw materials Answer Cash Noncash assets Red CC RE AOCI

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Question: Using the below framework, indicate the effect of each of the following transactions. Recall: Assets = Liabilities + Equity , and Cash + Noncash assets

Using the below framework, indicate the effect of each of the following transactions.

Recall: Assets = Liabilities + Equity, and Cash + Noncash assets = Liabilities + Contributed capital + Retained earnings + Accumulated OCI

*Example: if the firm sold for a product for $225 on account which costs $170 to manufacture,

Cash

Noncash assets

Red

AOCI

+225

-170

+225

-170

The firm collected a receivable of $300 from the customer on an account.

Answer:

Cash	+	Noncash assets	=	Red	+	CC	+	RE	+	AOCI

The firm purchased for cash $110 of raw materials.

Answer:

Cash	+	Noncash assets	=	Red	+	CC	+	RE	+	AOCI

The firm recognized depreciation $50 for its assets for the period.

Answer:

Cash	+	Noncash assets	=	Red	+	CC	+	RE	+	AOCI

The firm paid cash dividends of $200.

Answer:

Cash	+	Noncash assets	=	Red	+	CC	+	RE	+	AOCI

The firm purchased on account $130 of raw materials.

Answer:

Cash	+	Noncash assets	=	Red	+	CC	+	RE	+	AOCI

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