Refer to E3-10.
E3-10
Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:
Cash............................. $ 6,400
Accounts receivable...... 32,000
Supplies........................ 1,500
Equipment..................... 9,500
Land........................... 7,400
Building ...................... 25,300
Accounts payable............. $ 9,600
Unearned revenue ............ 3,840
Long-term note payable...... 48,500
Common stock................ 1,600
Additional paid-in capital.... 7,000
Retained earnings ............. 11,560
Required:
Use the transactions in E3-10 to identify the operating (O), investing (I), and financing (F) activities and the direction (+ for increase, - for decrease) and amount of the effect. If there is no effect, use NE.