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please help me solve this accounting problem that has multiple parts # As of January 1, Year 2, Room Designs, Inc. had a balance of
please help me solve this accounting problem that has multiple parts
# As of January 1, Year 2, Room Designs, Inc. had a balance of $5,100 in Cash, $2,800 in Common Stock, and $2,300 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, Year 2. Further analysis of the company's cash account indicated that during the Year 2 accounting period, the company had (1) net cash inflow from operating activities of $5,400, (2) net cash outflow for investing activities of $13,600, and (3) net cash inflow from financing activities of $13,000. All revenue and expense events were cash events. The following accounts and balances represent the general ledger of Room Designs, Inc. as of December 31, Year 2, before closing. ROOM DESIGNS, INC. General Ledger Stockholders' Equity Notes Payable Common Stock Revenue 6,000 11,300 10,500 Liabilities Assets Cash Bal. 9,900 Bal. Bal. Bal. Land Retained Earnings Bal. 2,300 Bal 13,600 Expenses Bal. 5,100 Dividends Bal. 1,500 Required a. Assume that the net cash inflow from financing activities of $13,000 was caused by three events. Based on the information above identify these events and determine the cash flow associated with each event. b. What did the company purchase that resulted in the cash outflow from investing activities? c-1. Prepare an income statement for the year ended December 31, Year 2. c-2. Prepare a statement of changes in stockholders' equity for the year ended December 31, Year 2. c-3. Prepare a balance sheet as of December 31, Year 2. C-4. Prepare a statement of cash flows for the year ended December 31, Year 2Step by Step Solution
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