91Ó°ÊÓ

Describe how the following business transactions affect the three elements of the accounting equation. a. Received cash for services performed. b. Invested cash in business. c. Paid for utilities used in the business. d. Purchased supplies on account. e. Purchased supplies for cash.

Financial information related to Madras Company, a proprietorship, for the month ended April 30,2006 , is as follows: \(\begin{array}{lr}\text { Net income for April } & \$ 73,000 \\ \text { Leo Perkins's withdrawals during April } & 12,000 \\ \text { Leo Perkins, capital, April 1, 2006 } & 297,200\end{array}\) Prepare a statement of owner's equity for the month ended April \(30,2006 .\)

Each of the following items is shown in the financial statements of Exxon Mobil Corporation. Identify the financial statement (balance sheet or income statement) in which each item would appear. a. Operating expenses i. Cash equivalents b. Crude oil inventory j. Long-term debt c. Income taxes payable k. Selling expenses d. Sales 1\. Notes receivable e. Investments m. Equipment f. Marketable securities n. Accounts payable g. Exploration expenses o. Prepaid taxes h. Notes and loans payable