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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 $6,600 Accounts payable $9,800 Accounts receivable 33,000 Unearned revenue 3,920 Supplies 1,600 Long-term note payable 49,700 Equipment 9,700 Common stock 1,700 Land Building 7,600 26,300 Additional paid-in capital 7,120 Retained earnings 12,560 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 $19,400 in cash. b. Received a $640 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $890 for rent in January. d. Received $7,400 from customers as payment on their accounts. e. Received an electric and gas utility bill for $420 to be paid in February. f. Ordered $1,000 in supplies. g. Paid $2,360 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $960 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. i. Paid $16,900 in wages to employees who worked in January. j. Declared and paid a $2,240 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). 1. Paid $360 in interest expense on the long-term note payable. Type of Activity Effect on Cash Flows 00 00
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