ALT-EZ-CASH FLOW TRANSACTIONS 1 Walden Corporation issued 100,000 shares of $4.00 par value common stock at par CASH ACCOUNTS PAYABLI COMMON STOCK 2 Walden purchased Land in the amount of $20,000, RETAINED EARNINGS paying cash F o ! 1 0 o F 3 Waldon purchased equipment in the amount of $38,000, paying cash. EXPENSES SERVICE REVENUE 4 Walden earned revenue of $80,000, receiving $15,000 in cash, and the rest 565,000 an account COUNTS RECEIVAB 5 Walden incurred expenses of $40,000, paying $22,000 in cash and the rest. $18,000, on account EPRECIATION EXPEN GAIN ON DISPOSAL 6 Walden sold 1/4 of the land for 58,000, making again on disposal. LAND 7 Walden recorded depreciation on the equipment In the amount of $4,200 EQUIPMENT CCUM. DEPR. EQUI 8 The accounts were closed: SERVICE REVENUE XXX GAIN ON DISPOSAL EXPENSES XXX DEPRECIATION EXPENSE xxx RETAINED EARNINGS XXX DEBIT CREDIT 9 Walden Corp declared and paid a cash dividend of $5,000 CASH FLOW STATEMENT INDIRECT METHOD- OBSERVE SIGNS NET INCOME + DEPRECIATION EXPENSE -INCREASE IN ACCOUNTS RECEIVABLE HINCREASE IN ACCOUNTS PAYABLE GAIN ON DISPOSAL CASH FLOW FROM OPERATIONS Automated CASH ACCOUNTS RECEIVABLE LAND EQUIPMENT ACCUM. DEPR EQUIP ACCOUNTS PAYABLE COMMON STOCK RETAINED EARNINGS SERVICE REVENUE EXPENSES DEPRECIATION EXPENSE GAIN ON DISPOSAL TOTALS -PURCHASE OF EQUIPMENT -PURCHASE OF LAND SALE OF LAND = CASH FLOW FROM INVESTING Atamam 0 0 HSSUANCE OF COMMON STOCK -PAYMENT OF DIVIDEND =CASH FLOW FROM FINANCING Automated 0 The trial balance is generated automatically from the Taccounts 0 NET CASH FLOW +BEGINNING BALANCE OF CASH =ENDING BALANCE OF CASH 0 Hint: this figure should match ending balance of cash