All-Stor Autonative Company exxperienced the following accounting events during Year 3: 1 Performed services for $25,000 cash. 2 Purchased land for $6,000 cash. 3. Hired on accountant to keep the books. 4 Received $50,000 cash from the issue of common stock. 5. Borrowed $5,000 cash from State Bank. 6. Paid $14,000 cash for salary expense. Z Sold land for $9,000 cash 8. Paid $10,000 cash on the loan from State Bank. 9. Poid $2,800 cash for utilities expense. 10. Paid a cash dividend of $5,000 to the stockholders. Required a. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA), investing oc (IA), or financing activities (FA) b. Prepare a statement of cash flows. Assume All-Stor Automotive hød o beginning cash balance of $9,000.

All-Stor Autonative Company exxperienced the following accounting events during Year 3: 1 Performed services for $25,000 cash. 2 Purchased land for $6,000 cash. 3. Hired on accountant to keep the books. 4 Received $50,000 cash from the issue of common stock. 5. Borrowed $5,000 cash from State Bank. 6. Paid $14,000 cash for salary expense. Z Sold land for $9,000 cash 8. Paid $10,000 cash on the loan from State Bank. 9. Poid $2,800 cash for utilities expense. 10. Paid a cash dividend of $5,000 to the stockholders. Required a. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA), investing oc (IA), or financing activities (FA) b. Prepare a statement of cash flows. Assume All-Stor Automotive hød o beginning cash balance of $9,000.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2.10E: Effects of transactions on Accounting equation On Time Delivery Service had the following selected...

See similar textbooks

Similar questions

Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?
In July of this year, M. Wallace established a business called Wallace Realty. The account headings are presented below. Transactions completed during the month follow. a. Wallace deposited 24,000 in a bank account in the name of the business. b. Paid the office rent for the current month, 650, Ck. No. 1000. c. Bought office supplies for cash, 375, Ck. No. 1001. d. Bought office equipment on account from Dellos Computers, 6,300. e. Received a bill from the City Crier for advertising, 455. f. Sold services for cash, 3,944. g. Paid on account to Dellos Computers, 1,500, Ck. No. 1002. h. Received and paid the bill for utilities, 340, Ck. No. 1003. i. Paid on account to the City Crier, 455, Ck. No. 1004. j. Paid truck expenses, 435, Ck. No. 1005. k. Wallace withdrew cash for personal use, 1,500, Ck. No. 1006. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700
Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.
Discuss how each of the following transactions will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. A company purchased $450 worth of office supplies on credit. B. The company parking lot was plowed after a blizzard. A check for $75 was given to the plow truck operator. C. $250 was paid on account. D. A customer paid $350 on account. E. Provided services for a customer, $500. The customer asked to be billed.
A firm has the following assets and liabilities at the year end, £ 1. Trade payables 39,000 2. Cash at bank 20,000 3. Computer equipment 87,000 4. Long-term loan 46,000 5. Inventories 31,000 6. Bank overdraft 13,000 7. Property 124,000 8. Trade receivables 43,000 9. Motor vans 30,000 10. Patents 25,000 he owner withdrew cash of £56,000 from the business during the year for living expenses. The owner's equity at the beginning of the year was 170,000. What was the profit for the year?
R. Davis Company has the following accounts and balances at the end of the year:Cash, $1,200Accounts Receivable, $280Office Equipment, $3,000Accounts Payable, $1,400Income from Services, $3,500Rent Expense, $670Salaries Expense, $1,000R. Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is the amount of total assets reported on the balance sheet? a.$4,480 b.$1,480 c.$9,800 d.$3,080
ll-Star Automotive Company experienced the following accounting events during Year 3: Performed services for $14,900 cash. Purchased land for $7,900 cash. Hired an accountant to keep the books. Received $39,000 cash from the issue of common stock. Borrowed $9,800 cash from State Bank. Paid $4,900 cash for salary expense. Sold land for $9,800 cash. Paid $3,900 cash on the loan from State Bank. Paid $5,100 cash for utilities expense. Paid a cash dividend of $1,900 to the stockholders. Requireda. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA), investing activities (IA), or financing activities (FA).b. Prepare a statement of cash flows. Assume All-Star Automotive had a beginning cash balance of $9,900. (The company has additional accounts, but they are not needed for this question.)
Davis Company has the following accounts and balances at the end of the year:Cash, $1,200Accounts Receivable, $280Office Equipment, $3,000Accounts Payable, $1,400Income from Services, $3,500Rent Expense, $670Salaries Expense, $1,000R. Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is R. Davis, Capital, at the end of the year?
In Year 1, Lee Incorporated billed its customers $56,300 for services performed. The company collected $40,600 of the amount billed. Lee incurred $37,900 of other operating expenses on account. Lee paid $24,400 of the accounts payable. Lee acquired $21,000 cash from the issue of common stock. The company invested $18,000 cash in the purchase of land. a. what amount of revenue will Lee report on the Year 1 income statement? b. what amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. what is the net cash flow from operating activities for the period? e. what is amount of net cash flow from investing activities? f. what is the amount of net cash flow from financing activities? g. what amounts of total assets, liabilities, and equity will be reported on the year-end sheet?
7: Purchased a building with a market value of $ 120 comma 000$120,000, and land with a market value of $ 24 comma 000$24,000. The business paid $ 45 comma 000$45,000 cash and signed a note payable to the bank for the remaining amount I'm confused as too which is credit and how to add the answer to the balance sheet etc.