Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stacey's Piano Rebuilding Company has been operating for one year (2019). At the start of 2020, its statement of earnings accounts had zero balances, and

Stacey's Piano Rebuilding Company has been operating for one year (2019). At the start of 2020, its statement of earnings accounts had zero balances, and the account balances on its statement of financial position were as follows: Cash Accounts receivable Supplies Equipment Land Building $ 15,500 Accounts payable 55,500 Deferred revenue (deposits) 3,500 Note payable (due in three years). 21, 500 Contributed capital 17,500 Retained earnings 69,500 $ 21,500 7,500 85,500 21,500 47,000 The following transactions occurred in January 2020: a. Received a $610 deposit from a customer who wanted her piano rebuilt. b. Rented a part of the building to a bicycle repart shop; received $610 for rent in January. c. Rebuilt and delivered five planos to customers who paid $17,100 in cash. d. Received $9,100 from customers as payment on their accounts. e. Received an electric and gas utility bill for $530 to be paid in February Ordered $910 in supplies, g Paid $3,000 on account to suppliers. h Received from Sam Mensa, the major shareholder, a $960 tool (equipment) to use in the business in exchange for the company's shares Paid $9.050 in wages to employees for work in January. J. Declared and paid a cash dividend of $3.550 < Prev 2 of 2 Next k. Received and paid for the supplies ordered in (1). Required: Use the following chart to identify whether each of the transactions in results in a cash flow effect from operating (O), investing (1), or financing (F) activities, and indicate the effect on cash (+ for increase and -for decrease). If there is no cash flow effect, write "none." The first transaction is provided as an example. (Enter any decreases to account balances with a minus sign.) Transaction a b Effect on Cash Flows Type of Activity (O, I, or F) o $ 610 C d e. f h L K

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Finance Doctors Tips And Tricks What You Dont Know Can Hurt You

Authors: Jhayne S. Santucci JD CPA CGMA

1st Edition

1735938815, 978-1735938813

More Books

Students also viewed these Accounting questions

Question

7. Discuss the key features of the learning organization.

Answered: 1 week ago