Directions

In Part I, next to each item listed, you will identify which statement the item would appear. You will need to determine whether itwould appear on the income statement (I), balance sheet (B), or statement of cash flows (CF).  Then, for each group, explain the difference among the items listed. Finally, in Part II, discuss the relationship between the three financial statements.

 

Part I

 

Set 1:

_____  Inventory, ending balance

_____  Cost of goods (inventory) sold during the period

_____ Cash paid to suppliers during the period

_____  Accounts payable, ending balance

Difference:

 

 

 

Set 2:

_____  Accounts receivable, ending balance

_____  Cash received from customers

_____  Sales

Difference:

 

 

 

Set 3:

_____ Wage expense for the period

_____  Wages payable, ending balance

_____  Cash paid for wages during the period

Difference:

 

 

 

Set 4:

_____  Property, plant, and equipment, ending balance

_____  Cash paid for property, plant, and equipment during the period

_____  Cash received from selling property, plant, and equipment during the period

_____  Depreciation expense during the period (expense of using property, plant, and equipment during the period)

Difference:

 

 

 

Set 5:

_____  Notes payable, ending balance

_____  Cash received from borrowing money during the period

_____  Cash used to pay off notes payable during the period

_____  Interest expense during the period (expense of using borrowed money during the period)

Difference:

 

 

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Part II

 

Discuss the Relationship between the financial statements identified:

Attachments:

• 1502181657-LP1 Accounting Assignment 1.docx