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Unlike the income statement, no financial ratios are reported on the statement of cash
flows.
Gospel Ministries purchased on account two pianos on April 3, 2012 for $6,600. The
company agreed to pay an extra $100 to have the seller deliver the pianos.
Unfortunately, one of the pianos was damaged during transit. The seller agreed to
deduct $200 from the amount owed. Gospel Ministries paid for the pianos in full on
May 3, 2012. Prepare the journal entries that Gospel Ministries should make on April 3
and May 3.
A corporation had several transactions affecting its stockholders' equity accounts during
the year. In the space provided, show the impact on the accounting equation by placing
a plus sign (+) for an increase, a minus sign (-) for a decrease, or N/A for no impact or
no total net impact.
Accounts receivable are shown on the balance sheet at their net realizable value.
