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A B D E F G H 1 j K L M N TRANSACTIONS 1 Walden Corporation issued 100,000 shares of $4.00 par value common stock at par. ALT-EZ-CASH FLOW CASH 2 Walden purchased Land in the amount of $20,000, paying cash. ACCOUNTS PAYABLE COMMON STOCK RETAINED EARNINGS 1 F o o 1 3 Waldon purchased equipment in the amount of $38,000, paying cash. 0 F EXPENSES SERVICE REVENUE 4 Walden earned revenue of $80,000, receiving $15,000 in cash, and the rest $65,000 on account. ACCOUNTS RECEIVABLE 5 Walden incurred expenses of $40,000, paying $22,000 in cash and the rest, $18,000, on account. DEPRECIATION EXPENSE GAIN ON DISPOSAL 6 Walden sold 1/4 of the land for $8,000, making again on disposal. LAND 7 Walden recorded depreciation on the equipment in the amount of $4,200. EQUIPMENT ACCUM. DEPR. EQUIP. 8 The accounts were closed: SERVICE REVENUE XXX GAIN ON DISPOSAL XXX EXPENSES XXX DEPRECIATION EXPENSE XXX RETAINED EARNINGS XXX DEBIT CREDIT 9 Walden Corp declared and paid a cash dividend of $5,000. CASH ACCOUNTS RECEIVABLE LAND EQUIPMENT ACCUM. DEPR EQUIP. ACCOUNTS PAYABLE COMMON STOCK RETAINED EARNINGS SERVICE REVENUE CASH FLOW STATEMENT-INDIRECT METHOD-OBSERVE SIGNS NET INCOME + DEPRECIATION EXPENSE -INCREASE IN ACCOUNTS RECEIVABLE +INCREASE IN ACCOUNTS PAYABLE GAIN ON DISPOSAL =CASH FLOW FROM OPERATIONS 0 Automated sum -PURCHASE OF EQUIPMENT -PURCHASE OF LAND EQUIPMENT ACCUM. DEPR. EQUIP. 8 The accounts were closed: SERVICE REVENUE XXX GAIN ON DISPOSAL EXPENSES XXX DEPRECIATION EXPENSE XXX RETAINED EARNINGS XXX DEBIT CREDIT 9 Walden Corp declared and paid a cash dividend of $5,000. CASH FLOW STATEMENT-INDIRECT METHOD-OBSERVE SIGNS NET INCOME + DEPRECIATION EXPENSE -INCREASE IN ACCOUNTS RECEIVABLE +INCREASE IN ACCOUNTS PAYABLE -GAIN ON DISPOSAL =CASH FLOW FROM OPERATIONS 0 Automated sum CASH ACCOUNTS RECEIVABLE LAND EQUIPMENT ACCUM. DEPR EQUIP. ACCOUNTS PAYABLE COMMON STOCK RETAINED EARNINGS SERVICE REVENUE EXPENSES DEPRECIATION EXPENSE GAIN ON DISPOSAL TOTALS -PURCHASE OF EQUIPMENT -PURCHASE OF LAND +SALE OF LAND = CASH FLOW FROM INVESTING 0 Automated sum 0 0 +ISSUANCE OF COMMON STOCK -PAYMENT OF DIVIDEND =CASH FLOW FROM FINANCING Automated sum The trial balance is generated automatically from the T-accounts. NET CASH FLOW +BEGINNING BALANCE OF CASH =ENDING BALANCE OF CASH TUTTI 0 0 Hint: this figure should match ending balance of cash