ALT-EZ-CASH FLOW

TRANSACTIONS

1

Walden Corporation issued 100,000 shares of

CASH

ACCOUNTS PAYABLE

COMMON STOCK

RETAINED EARNINGS

$4.00 par value common stock at par.

F

I

O

O

3

Waldon purchased equipment in the amount of

F

$38,000, paying cash.

EXPENSES

SERVICE REVENUE

4

Walden earned revenue of $80,000, receiving

$15,000 in cash, and the rest $65,000 on account.

ACCOUNTS RECEIVABLE

5

Walden incurred expenses of $40,000, paying

$22,000 in cash and the rest, $18,000, on account.

DEPRECIATION EXPENSE

GAIN ON DISPOSAL

7

Walden recorded depreciation on the equipment

in the amount of $4,200.

EQUIPMENT

ACCUM. DEPR. EQUIP.

8

The accounts were closed:

SERVICE REVENUE XXX

EXPENSES XXX

DEPRECIATION EXPENSE XXX

LAND

RETAINED EARNINGS XXX

9

Walden Corp declared and paid a cash dividend

of $5,000.

DEBIT

CREDIT

CASH FLOW STATEMENT--INDIRECT METHOD--OBSERVE SIGNS

CASH

NET INCOME

ACCOUNTS RECEIVABLE

+ DEPRECIATION EXPENSE

LAND

-INCREASE IN ACCOUNTS RECEIVABLE

EQUIPMENT

+INCREASE IN ACCOUNTS PAYABLE

ACCUM. DEPR EQUIP.

=CASH FLOW FROM OPERATIONS

0

Automated sum

ACCOUNTS PAYABLE

COMMON STOCK

RETAINED EARNINGS

-PURCHASE OF EQUIPMENT

SERVICE REVENUE

= CASH FLOW FROM INVESTING

0

Automated sum

EXPENSES

DEPRECIATION EXPENSE

+ISSUANCE OF COMMON STOCK

GAIN ON DISPOSAL

-PAYMENT OF DIVIDEND

TOTALS

0

0

=CASH FLOW FROM FINANCING

0

Automated sum

The trial balance is generated automatically from

NET CASH FLOW

0

Automated sum

the T-accounts.

+BEGINNING BALANCE OF CASH

0

=ENDING BALANCE OF CASH

0

Automated sum. HINT: THIS FIGURE MUST MATCH YOUR CASH BALANCE.