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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

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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 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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