Question
The following events pertain to Super Cleaning Company: Acquired $15,900 cash from the issue of common stock. Provided $13,900 of services on account. Provided services
The following events pertain to Super Cleaning Company:
- Acquired $15,900 cash from the issue of common stock.
- Provided $13,900 of services on account.
- Provided services for $4,900 cash.
- Received $3,300 cash in advance for services to be performed in the future.
- Collected $9,900 cash from the account receivable created in Event 2.
- Paid $5,900 for cash expenses.
- Performed $1,650 of the services agreed to in Event 4.
- Incurred $2,400 of expenses on account.
- Paid $1,550 cash in advance for one-year contract to rent office space.
- Paid $2,050 cash on the account payable created in Event 8.
- Paid a $2,400 cash dividend to the stockholders.
- 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 Statement of 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. 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 all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)
SUPER CLEANING COMPANY Effect of Events on the Financial Statements Balance Sheet Liabilities + Stockholders' Equity Accounts . Unearned Common Retained Payable " Revenue Stock Earnings 15,900 + Income Statement - Expenses = Net Inc Revenue Cash Assets Accounts Receivable + Prepaid Rent 15,900 + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
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