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Analyzing the Effect of Transactions
Purpose of Assignment
The purpose of this assignment is to help you become familiar with examining transactions and how
it affects the balance sheet.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Write a minimum 150-word response to each of the following scenarios from Exercise E3-1
in Financial Accounting (p. 132) describing the effect of each transaction on assets, liabilities, and
stockholder’s equity:
•
Selected transactions for Thyme Advertising Company, Inc.
o Issued common stock to investors in exchange for cash received from investors.
o Paid monthly rent.
o Received cash from customers when service was performed.
o Billed customers for services performed.
o Paid dividend to stockholders.
o Incurred advertising expense on account.
o Received cash from customers billed in (4).
o Purchased additional equipment for cash.
o Purchased equipment on account.
Use the Excel® spreadsheet to record your answers and submit with your responses.
Click the Assignment Files tab to submit your assignment.
Week 2 Learning Team Collaborative Discussion: Analyzing
the Effect of Transactions
Prepare for Week 2 Individual Assignment: Analyzing the Effect of Transactions.
Discuss with your collaborative group how to develop a reflection on the effect of each transaction
on assets, liabilities, and stockholder’s equity.
Write a 175-word individual response.
Analyzing the Effect of Transactions
Grading Guide
ACC/290 Version 7
Principles of Accounting I
Copyright
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to imply endorsement, sponsorship, or affiliation.
Edited in accordance with University of Phoenix® editorial standards and practices.
Analyzing the Effect of
Transactions Grading Guide
ACC/290 Version 7

Individual Assignment: Analyzing the Effect of Transactions
Purpose of Assignment
The purpose of this assignment is to help you become familiar with examining transactions and how it affects
the balance sheet.
Resources Required
Financial Accounting: Tools for Business Decision Making
Grading Guide
Content
Met
Partially
Met
Not Met
Total
Available
Total
Earned
6
#/6
Partially
Met
Not Met
Comments:
Wrote a minimum 150-word response
describing the effect of each transaction on
assets, liabilities, and stockholder’s equity.
Answered the following scenarios:
•
•
•
•
•
•
•
•
•
Issued common stock to investors in
exchange for cash received from
investors.
Paid monthly rent.
Received cash from customers when
service was performed.
Billed customers for services
performed.
Paid dividend to stockholders.
Incurred advertising expense on
account.
Received cash from customers billed
in (4).
Purchased additional equipment for
cash.
Purchased equipment on account.
Writing Guidelines
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
Met
Comments:
2
Analyzing the Effect of
Transactions Grading Guide
ACC/290 Version 7
Writing Guidelines
Met
Partially
Met
Not Met
Total
Available
Total
Earned
3
#/3
9
#/9
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
Additional comments:
#
Comments:
3
Name
Section
Date
93
1.
2.
3.
4.
5.
6.
7.
8.
9.
93
EXERCISES
Analyze the effect of transactions.
(LO 1), C
E3-1 Selected transactions for Thyme Advertising Company, Inc. are listed here.
1. Issued common stock to investors in exchange for cash received from investors.
2. Paid monthly rent.
3. Received cash from customers when service was performed.
4. Billed customers for services performed.
5. Paid dividend to stockholders.
6. Incurred advertising expense on account.
7. Received cash from customers billed in (4).
8. Purchased additional equipment for cash.
9. Purchased equipment on account.
Instructions
Describe the effect of each transaction on assets, liabilities, and stockholders’ equity. For
example, the first answer is (1) Increase in assets and increase in stockholders’ equity.
Analyze the effect of transactions on assets, liabilities, and stockholders’ equity.
(LO 1), AP
…
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