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The following events pertain to James Cleaning Company: . Acquired $16,000 cash from the issue of common stock. 2 Provided services for $5,000 cash. 3.
The following events pertain to James Cleaning Company: . Acquired $16,000 cash from the issue of common stock. 2 Provided services for $5,000 cash. 3. Provided $14,000 of services on account. , Collected $10,000 cash from the account receivable created in Event 3. Paid $1,600 cash to purchase supplies. 6 Had $150 of supplies on hand at the end of the accounting period. , Received $3,400 cash in advance for services to be performed in the future & Performed one-half of the services agreed to in Event 7 Paid $6,000 for salaries expense Incurred $2,500 of other operating expenses on account. 1. Paid $2,150 cash on the account payable created in Event 10 12. Paid a $2,500 cash dividend to the stockholders. Required: Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.) Effect of Events on the Financial Statements Accounts + Supplies Statement of Cash Flows No. Cash 16,000 16.000 16.000 FA 2. 10 Bal
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