Question: 4-4 Page 144

Assume that Cathedral Enterprises, which is in its first year of operations, entered into the following trans- actions. Show how the five transactions affect the accounting equation and prepare an income statement, statement of shareholders equity, balance sheet, and statement of cash flows.

1. Shareholders contributed $10,000 cash.

2. Performed services for $8,000, receiving $6,000 in cash and a $2,000 receivable.

3. Incurred expenses of $6,000. Paid $3,000 in cash and $3,000 is still payable.

4. Purchased land for $12,000. Paid $2,000 in cash and signed a long-term note for the

remainder.

5. Paid the shareholders $400 in the form of a dividend.

6. Sold one-half of the land purchased in (4) for $7,000 cash

Need it to be correct please!