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Prepare the statement of cash flows, in good form Smith Consulting Company started the period with cash of $29,000, common stock of $15,000, and retained
Prepare the statement of cash flows, in good form
Smith Consulting Company started the period with cash of $29,000, common stock of $15,000, and retained earnings of $14,000. Smith engaged in the following transactions in 2020: Transactions during 2020 1. On January 1, 2020, purchased office furniture for $14,000. 2. On March 1, paid $6,000 for an insurance policy that provides coverage for 12 months beginning immediately. 3. Purchased $2,000 of supplies for cash. 4. Provided $41,000 of services for cash. 5. Paid $9,200 for salaries expense. 6. On April 1, received $14,000 for services that will be performed over the next 12 months beginning immediately. Information for Adjusting Entries 7. The furniture had an estimated life of six years and a $2,000 salvage value. 8. Recognized the expired insurance. 9. An inventory of supplies showed $350 of supplies on hand as of December 31. 10. Recognized the revenue associated with Event 6 as of December 31. Chart of Accounts 100 Cash 104 Accounts receivable 108 Prepaid insurance 112 Supplies 116 Office furniture 114 Accumulated depreciation 200 Accounts payable 204 Wages payable 208 Salaries payable 212 Taxes payable 218 Unearned revenue 300 Common stock 320 Retained earnings 400 Service revenue 900 Salaries expense 904 Depreciation expense 908 Insurance expense 910 Supplies expenseStep by Step Solution
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