Describe the changes in: a. Statement of financial position b. Statement of prof

ID: 2535579 • Letter: D

Question

Describe the changes in:

a. Statement of financial position

b. Statement of profit and loss

c. Other comprehensive income

d. Statement of cash flows

in the following:

(1) Cost of services (COGS) has been $1000 less (paid) owing to increased effeciencies

(2) $500 has been paid off on a mortgage (Current)

(3) Equipment for $6000 has been bought on account

(4) Income had been $2000 higher owing to increased prices (Credit sales affected)

(5) A bill for $600 delivery services was recieved (not paid for)

(6) Equipment was depreciated by $700

1) Increases profit and decline in outflows of cash flow statement.

2)Under Current Liabilities of Statement of financial position and cash outflow from OperatingActivities

3)Under Plant, property and equipment section of Statement of financial position. Also in current liabilities section.

4) Shown in Income statement.

In statement of financial position - increases accounts receivable

In cash flow statement - decreases operating cash flow.

5) Shown in Income statement.

In statement of financial position - increases current liabilities

In Cash flow statement - increases OperatingActivities

6) Shown in Income statement (reduces profit)

Cash flow statement - Increase in OperatingActivities

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