1.) Brewster Company is a newly organized company that purchased an existing business. Listed below are events from its first month in business.

Your answer will be evaluated based on whether you have included every account that is needed and whether you have included any account that is not needed. An account can be used in analyzing more than one event.

Accounts:

accounts payable

accounts receivable

cash

common stock

equipment

interest payable

land

notes payable

retained earnings dividends

retained earnings interest expense

retained earnings operating expense

retained earnings sales

salaries payable

Event A: Investors contributed cash of $230,000 and were issued shares of stock. Which accounts should be used?

Event B: Brewster purchased equipment for $50,000, paying cash. Which accounts should be used?

Event C: Brewster signed a note and borrowed $25,000. At the same time, the bank required an interest payment of $250 from Brewster for the current period. The balance of $24,750 was deposited in Brewsters bank account. Which accounts should be used?

Event D: Brewster recorded sales of $52,000, of which $30,000 were for cash and the remainder were credit sales. Which accounts should be used?

Event E: Brewster paid operating expenses of $21,000 in cash. Which accounts should be used?

Event F: Brewster paid a small dividend of $3,000 to shareholders. Which accounts should be used?

2.) Review the six events for Brewster Company listed in the previous question and answer the following: What amount should be reported as the Cash from (used by) Operations for the period?

3.) Review the six events for Brewster Company listed in Part 3 and answer the following: What amount should be reported as the "Cash from (used by) Financing Activities for the period?