Effects of Each Transaction on a Financial Statement

Satka Fishing Expedition, Inc., recorded the following transactions in July.

1. Provided an ocean fishing expedition for a credit customer, payment is due August 10.
2. Paid Marine Service Center for repairs to boats performed in June.(In June, Satka Fishing Expedition, Inc., had received and properly recorded the invoice for these repairs.)
3. Collected the full amount due from a credit customer for a fishing expedition provided in June.
4. Received a bill from Baldy’s Bait Shop for bait purchased and used in July. Payment is due August 3.
5. Purchased a new fishing boat on July 28, paying part cash and issuing a note payable for the balance. The new boat is first scheduled for use on August 5.
6. Declared and paid a cash dividend on July 31.

Indicate the effects each of these transactions will have upon the following six total amounts in the company’s financial statements for the month of July.  Organize your answer in tabular form, using the column headings shown, and use the code letters I for increase, D for decrease, and NE for no effect. The answer to transaction I is provided as an example.

Answer Preview-Effects of Each Transaction on a Financial Statement-ACCTG.1A