Use the information in Exercise 1-13 to prepare an October 31 statement of cash flows for Best
Question:
Use the information in Exercise 1-13 to prepare an October 31 statement of cash flows for Best Answers. Also assume the following:
a. The owner’s initial investment consists of \($38,000\) cash and \($36,000\) in land.
b. The \($28,000\) equipment purchase is paid in cash.
c. The accounts payable balance of \($7,500\) consists of the \($4,250\) office supplies purchase and \($3,250\) in employee salaries yet to be paid.
d. The rent, telephone, and miscellaneous expenses are paid in cash.
e. Only \($2,000\) cash has been collected for the \($15,000\) consulting services provided.
Exercise 1-13
On October 1, Sasha Shandi organized Best Answers a new consulting firm. On October 31, the company’s records show the following items and amounts. Use this information to prepare an October in¬ come statement for the business.
Step by Step Answer:
Fundamental Accounting Principles
ISBN: 9780072946604
17th Edition
Authors: Kermit D. Larson, John J Wild, Barbara Chiappetta