For each transaction indicate the effect on each account in

Question

In an annual report, the following activities were inferred.

(a)    Purchased supplies; paid part in cash and the rest on account

(b)   Purchased additional investments

(c)    Incurred operating costs in company-owned facilities; paid part in cash and the rest on account

(d)   Sold products to customers for cash

(e)   Used supplies

(f)     Paid cash dividends

(g)    Sold franchises, receiving part in cash and the rest in notes due from franchises

(h)   Paid interest on debt incurred and due during the period

For each transaction, indicate the effect on each account in the balance sheet and income statement. Use + for increase and ­- for decrease. Write NE if there is no effect. Then indicate if each transaction would be reported on the statement of cash flows. Use O for operating activities, F for financing activities, and NE if the transaction would not be included on the statement. Use the table below as a guide.

	Balance Sheet			Income Statement			Statement of Cash Flows
	Assets	Liabilities	Stockholders' Equity	Revenues	Expenses	Net Income
Transaction	+ / - / NE	+ / - / NE	+ / - / NE	+ / - / NE	+ / - / NE	+ / - / NE	O/I/F/NE