Question
The following events pertain to Super Cleaning Company: Acquired $15,200 cash from the issue of common stock. Provided $13,200 of services on account. Provided services
The following events pertain to Super Cleaning Company:
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Acquired $15,200 cash from the issue of common stock.
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Provided $13,200 of services on account.
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Provided services for $4,200 cash.
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Received $2,600 cash in advance for services to be performed in the future.
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Collected $9,200 cash from the account receivable created in Event 2.
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Paid $5,200 for cash expenses.
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Performed $1,300 of the services agreed to in Event 4.
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Incurred $1,700 of expenses on account.
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Paid $1,200 cash in advance for one-year contract to rent office space.
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Paid $1,350 cash on the account payable created in Event 8.
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Paid a $1,700 cash dividend to the stockholders.
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Recognized rent expense for nine months use of office space acquired in Event 9.
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, and NC for net change in cash. If an account is not affected by the event, leave the cell blank. The first event is recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not every cell will require entry.)
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Financial Accounting For Decision Makers
Authors: Peter Atrill, Eddie McLaney
7th Edition
027378563X, 9780273785637
