In alphabetical order below are balance sheet items for Gidget Company at December 31, 1998. Prepare a balance sheet following the format of Illustration 1-4.

Determine proper financial statement.
(SO 4)
BE1-1 Classify each of the following items as dividends (D), revenue (R), or expense (E).

(a) Costs incurred for advertising

(b) Assets received for services performed

(c) Costs incurred for insurance

(d) Amounts paid to employees

(e) Cash distributed to stockholders

(f) Assets received in exchange for allowing the use of our building (g) Costs incurred for utilities used BE1-2 Indicate in which part of the statement of cash flows each item would appear: operating activities (O), investing activities (I), or financing activities (F).

(a) Cash received from customers

(b) Cash paid to stockholders (dividends)

(c) Cash received from issuing new common stock

(d) Cash paid to suppliers

(e) Cash paid to purchase a new office building BE1-3 Presented below are three transactions. Determine whether each transaction affects common stock (C), dividends (D), revenue (R), expense (E), or does not affect stockholders' equity (NSE).

(a) Paid cash to purchase equipment

(b) Received cash for services performed

(c) Paid employee salaries BE1-4 In alphabetical order below are balance sheet items for Gidget Company at December 31, 1998. Prepare a balance sheet following the format of Illustration 1-4.
\[ \begin{array}{ll} \text { Accounts payable } & \$ 90,000 \\ \text { Accounts receivable } & \$ 81,000 \\ \text { Cash } & \$ 40,500 \\ \text { Common stock } & \$ 31,500 \end{array} \]

Transcribed Image Text:

Accounts payable $90,000 Accounts receivable $81,000 Cash $40,500 Common stock $31,500