Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Acquired $15,600 cash from the issue of common stock. 2. Provided $13.600 of services on account. 3. Provided services for $4,600 cash. 4. Received
1. Acquired $15,600 cash from the issue of common stock. 2. Provided $13.600 of services on account. 3. Provided services for $4,600 cash. 4. Received $3,000 cash in advance for services to be performed in the future. 5. Collected $9,600 cash from the account receivable created in Event 2 6. Paid $5,600 for cash expenses. 7. Performed $1,500 of the services agreed to in Event 4. 8. Incurred $2,100 of expenses on account. 9. Pald $1,400 cash in advance for one-year contract to rent office space. 0. Paid $1,750 cash on the account payable created in Event 8 11. Pald a $2,100 cash dividend to the stockholders. 2. Recognized rent expense for nine months' use of office space acquired in Event 9. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. If an account is not affected by the event, leave the cell blank. The first event is recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not every cell will require entry.) SUPER CLEANING COMPANY Effect of Events on the Financial Statements Liabilities + Stockholders' Equity Accounts Unearned Common Retained Payable Revenue Earnings - 15.600 Assets Accounts Receivable Income Statement Statement of Cal Flow Prepaid Rent Cash Rene Stock - Expenses - Net Income 15,600 FA ITTITTI
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started