Accounting

Accounting for Accruals and Deferrals

Self-Study Problems

Articulation Problems

For each situation below, indicate its effects on the accounting elements shown on the accompanying chart. Use the following letters to indicate your answer (you do not need to enter amounts):

Increase = I Decrease = D No effect = N

1. McHenry Co. acquired cash from the owners to start the business.

|Assets |Liabilities |Equity |Revenues |Expenses |Net Income |Cash |

| | | | | | | |

2. Jasper Co. provided services to its customers for cash.

|Assets |Liabilities |Equity |Revenues |Expenses |Net Income |Cash |

| | | | | | | |

3. Lane Co. provided services to a customer on account.

|Assets |Liabilities |Equity |Revenues |Expenses |Net Income |Cash |

| | | | | | | |

4. Farlow Co. collected cash from customers for services that Farlow agreed to perform in the future.

|Assets |Liabilities |Equity |Revenues |Expenses |Net Income |Cash |

| | | | | | | |

5. Lane Co. collected cash from accounts receivable.

|Assets |Liabilities |Equity |Revenues |Expenses |Net Income |Cash |

|...