Consider the Following List of Transactions

question 8

Essay

Consider the following list of transactions:
1)Provide services to customers on account2)Purchase land by paying cash.3)Purchase a fire insurance policy that will provide coverage for a two-year period4)Acquire cash by issuing common stock.5)Recognize expense for the amount of supplies that had been used during the period6)Receive payment from a customer for services that will be provided over the next six monthsRequired:a)In the table below, indicate the accounts that would be debited and credited for each of the transactions listed above.
b)Indicate how each transaction affects the financial statements using a "+" to signify an increase, "−" to signify a decrease, or "NA" to signify not affected under each component in the horizontal financial statements model shown below. In the last column, use the letters "OA" for operating activities, "IA" for investing activities, and "FA" for financing activities, or "NA" if the statement of cash flows is not affected.

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Definitions:

Amylase

An enzyme that catalyzes the hydrolysis of starch into sugars, present in saliva and pancreatic fluid.

Starch

A carbohydrate consisting of a large number of glucose units joined by glycosidic bonds, primarily found in plants and used as an energy store.

Carboxypeptidase

An enzyme that breaks down proteins by hydrolyzing the peptide bonds at the carboxyl end of the protein.

Microvilli

Minute projections from the surface of some cells, increasing surface area and facilitating absorption, such as in the intestines.