E3-12 Identifying Activities Affecting the Statement of Cash Flows LO3-5 Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts receivable Supplies Equipment Land Building $ 6,900 34,500 1,750 10,000 7,900 27,800 Accounts payable Unearned revenue Note payable (long-term) Common stock Retained earnings Additional paid-in capital $ 10,100 4,040 51,500 1,850 7,300 14,060 a. Rebuilt and delivered five pianos in January to customers who paid $20,000 in cash. b. Received a $700 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $950 for rent in January. d. Received $7,700 from customers as payment on their accounts. e. Received an electric and gas utility bill for $450 to be paid in February. f. Ordered $1,060 in supplies. g. Paid $2,450 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $1,020 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. i. Paid $17,500 in wages to employees who worked in January. j. Declared and paid a $2,300 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). Required: For the transactions below, Identify the operating (O), investing (1), and financing (F) activities and the direction (+ for increase, - for decrease and NE for no effect) and amount of the effect. Transaction Statement of Cash Flows Direction and Amount of Effect a. b. C. d. e. f. g. h. i. j. k