TRANSACTIONS # Walden Corporation issued 100,000 shares of $4.00 par value common stock at par. CASH ACCOUNTS PAYABLE COMMON STOCK RETAINED EARNINGS 1 F o O Waldon purchased equipment in the amount of $38,000, paying cash. F EXPENSES SERVICE REVENUE # Walden earned revenue of $80,000, receiving $, $15,000 in cash, and the rest $65,000 on account. ACCOUNTS RECEIVABLE # Walden incurred expenses of $40,000, paying $22,000 in cash and the rest, $18,000, on account. DEPRECIATION EXPENSE GAIN ON DISPOSAL # Walden recorded depreciation on the equipment in the amount of $4,200. EQUIPMENT ACCUM. DEPR. EQUIP. # The accounts were closed: # SERVICE REVENUE XXX EXPENSES XXX DEPRECIATION EXPENSE XXX RETAINED EARNINGS XXX LAND # Walden Corp declared and paid a cash dividend of $5,000. DEBIT CREDIT CASH ACCOUNTS RECEIVABLE CASH FLOW STATEMENT--INDIRECT METHOD OBSERVE SIGNS NET INCOME + DEPRECIATION EXPENSE -INCREASE IN ACCOUNTS RECEIVABLE +INCREASE IN ACCOUNTS PAYABLE =CASH FLOW FROM OPERATIONS 0 Automated sum LAND EQUIPMENT ACCUM. DEPR EQUIP. ACCOUNTS PAYABLE COMMON STOCK RETAINED EARNINGS SERVICE REVENUE EXPENSES DEPRECIATION EXPENSE GAIN ON DISPOSAL TOTALS -PURCHASE OF EQUIPMENT = CASH FLOW FROM INVESTING 0 Automated sum HISSUANCE OF COMMON STOCK -PAYMENT OF DIVIDEND CASH FLOW FROM FINANCING 0 0 Automated sum DON Automated sum The trial balance is generated automatically from the T-accounts. NET CASH FLOW +BEGINNING BALANCE OF CASH ENDING BALANCE OF CASH Automated sum. HINT: THIS FIGURE MUST MATCH YOUR CASH BALANCE