RECOMMENDED!!Ames Company uses accrual accounting and issues financial statements

  

Ames Company uses accrual accounting and issues financial statements every month. The company’s records reveal the following events during the current period. For each event, indicate whether the event results in an Increase, Decrease, or No Change in assets, liabilities and stockholders’ equity. Also, explain the reasoning for your response.ExamplePay cash for suppliesa. Assets: No changeb. Liabilities: No changec Stockholders’ Equity: No changed.Reason: The asset “Supplies” increases and the asset “Cash” decreases so total assets remain unchanged.1. Received cash for services provided during the period.a Assets:b.Liabilities:c.Stockholders’ Equity:d Reason: The asset “Cash” increases, and the2. Purchased office equipment on account.a.Assets:b.Liabilities:c.Stockholders’ Equity:d.Reason:3. Paid employees’ salaries.a.Assets:b.Liabilities:c.Stockholders’ Equity:d.Reason:4. Received cash from a customer in payment on the customer’s existing account.a.Assets:b.Liabilities:c.Stockholders’ Equity:d.Reason:5. Paid the telephone bill for the next month.a.Assets:b.Liabilities:c.Stockholders’ Equity:d.Reason:6. Paid for office equipment purchased in transaction 2.a.Assets:b.Liabilities:c.Stockholders’ Equity:d.Reason:7. Received cash for products that will be provided during the next period.a.Assets:b.Liabilities:c.Stockholders’ Equityd.Reason:8. Obtained a loan from the bank.a.Assets:b.Liabilities:c.Stockholders’ Equityd.Reason:9. Billed customers for services rendered.a.Assets:b.Liabilities:c.Stockholders’ Equityd.Reason:10. Received a bill for the current period’s utilities.a.Assets:b.Liabilities:c.Stockholders’ Equityd.Reason: