The following events pertain to The Plains Company: 1. Acquired ($12,000) cash from the issue of common
Question:
The following events pertain to The Plains Company:
1. Acquired \($12,000\) cash from the issue of common stock.
2. Provided services for \($4,000\) cash.
3. Provided \($12,000\) of services on account.
4. Collected \($9,000\) cash from the account receivable created in Event 3.
5. Paid \($900\) cash to purchase supplies.
6. Elad $ 100 of supplies on hand at the end of the accounting period.
7. Received \($1,800\) cash in advance for services to be performed in the future.
8. Performed one-half of the services agreed to in Event 7.
9. Paid \($4,600\) for salaries expense.
10. Incurred \($1,500\) of other operating expenses on account.
11. Paid \($1,200\) cash on the account payable created in Event 10.
12. Paid a \($1,000\) 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 in¬ vesting activity, FA for financing activity, and NC for net change in cash. Use NA to indicate accounts not affected by the event. The first event is recorded as an example.
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