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On July 31, 2021, the end of the prior fiscal year, Wildhorse Repair Services Ltd. reported the following alphabetically ordered list of accounts and
On July 31, 2021, the end of the prior fiscal year, Wildhorse Repair Services Ltd. reported the following alphabetically ordered list of accounts and amounts. Accounts payable $2,100 Deferred revenue $1,190 Accounts receivable 3,100 Equipment 10,000 Accumulated depreciation-equipment 2,000 Retained earnings 16,340 Accumulated depreciation-vehicles 5,000 Salaries payable 1,460 Bank loan payable (non-current) 4,000 Supplies 990 Cash 7,200 Vehicles 25,000 Common shares 14,200 During August, the following summary transactions were completed: Aug- 1 Paid $280 for advertising on Kijiji for the current month. 2 3 Provided $1,190 of services related to cash received in advance last month for services to be performed this month. Paid August rent, $990. 6 Received $1,200 cash from customers in payment of accounts. 7 10 Signed a contract with Merrithew's Appliances Ltd. to provide future repair services for its customers as required. Paid $3,060 for salaries due employees, of which $1,600 was for August and $1,460 for July salaries payable. 13 Received $3,000 cash for services performed to date in August. 15 22 Purchased new equipment for $1,800, which was financed with a bank loan. 20 Paid creditors $2,100 of accounts due. 22 Purchased supplies on account for $900. 24 Paid $3,000 for employees' salaries. 27 Billed customers $3,710 for services performed. 29 Received $860 from customers for services to be performed in the future. 30 Paid $500 on the bank loan, in addition to interest of $50. 31 Paid income tax of $380. 31 Declared and paid $430 of dividends to shareholders. Review the Cash account in the general ledger. Classify each August transaction as either an operating activity, investing a or financing activity. Payments: Cash flow Aug. 1 to Advertising Aug. 3 Aug. 10 Rent Aug. 20 Aug. 24 Aug. 30 Receipts: Aug. 31 Aug. 31 Aug. 6 Aug. 13 Aug. 29 Salaries On account to suppliers Salaries Loan principal Loan interest Income tax Dividends declared and paid On account from customers Revenue Deferred revenue > > > > > >
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