Several events are listed below. Indicate whether each event is an external event that should be recorded as a transaction, an internal event which should be recorded as a transaction, or an event which should not be recorded. Use the following identification codes for your answers:
E - External event to be recorded as a transaction I - Internal event to be recorded as a transaction NR - An event which should NOT be recorded
_____ An order is placed with a supplier for merchandise.
_____ Common stock is issued to investors.
_____ Cash sales are made
_____ Raw materials are entered into production. _____
Federal income tax returns are prepared by the company's accountant.
_____ Bills are received for utility expenses.
_____ Payment is received from customers to whom merchandise had been sold on credit
_____ Money collected from cash and credit customers is deposited at a local bank.
Determine whether each of these statements is either as of a point in time or for a period ended
A - Point in time
B - Period ended
_____ Income Statement
_____ Balance Sheet
_____ Statement of Cash Flows
_____ Statement of Retained Earnings