Use the information in Exercise 1-13 to prepare an October 31 statement of cash flows for Best

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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.image text in transcribed

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Fundamental Accounting Principles

ISBN: 9780072946604

17th Edition

Authors: Kermit D. Larson, John J Wild, Barbara Chiappetta

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