Question
Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances
Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash $7,600 Accounts payable $10,800 Accounts receivable 38,000 Unearned revenue 4,320 Supplies 2,100 Equipment 10,700 Long-term note payable Common stock 55,700 2,200 Land Building 8,600 31,300 Additional paid-in capital 7,720 Retained earnings 17,560 Required: For the transactions below, indicate how the transactions will affect the statement of cash flows. Note: Cash outflows should be indicated with a minus sign. If there is no effect on the statement of cash flows, select "No effect". Transaction a. Rebuilt and delivered five pianos in January to customers who paid $21,400 in cash. b. Received a $840 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $1,090 for rent in January. d. Received $8,400 from customers as payment on their accounts. e. Received an electric and gas utility bill for $520 to be paid in February. f. Ordered $1,200 in supplies. g. Paid $2,660 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $1,160 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. i. Paid $18,900 in wages to employees who worked in January. j. Declared and paid a $2,440 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). I. Paid $560 in interest expense on the long-term note payable. Type of Activity Effect on Cash Flows
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