Question
[The following information applies to the questions displayed below.] At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
[The following information applies to the questions displayed below.]
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
| Account | Balance |
|---|---|
| Cash | $ 27,300 |
| Accounts receivable | 16,300 |
| Accounts payable | 13,700 |
| Common stock | 16,000 |
| Retained earnings | 13,900 |
The following events apply to Oak Consulting for Year 2:
Provided $67,600 of services on account.
Incurred $2,700 of operating expenses on account.
Collected $47,800 of accounts receivable.
Paid $36,700 cash for salaries expense.
Paid $14,760 cash as a partial payment on accounts payable.
Paid a $8,000 cash dividend to the stockholders.
c. Show the beginning balances and the transactions in a horizontal statements model.
Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting An Introduction To Concepts Methods And Uses
Authors: Sidney Davidson, Roman L. Weil, Clyde P. Stickney
2nd Edition
0030452961, 978-0030452963
