In Year 1, Lee Inc. billed its customers $56,200 for services performed. The company collected $41,800 of the amount billed. Lee incurred $37,700 of other operating expenses on account. Lee paid $24,100 of the accounts payable. Lee acquired $39,000 cash from the issue of common stock. The company invested $14,000 cash in the purchase of land. (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: a. Create an accounting equation from this information. b. What amount of cash flow from revenue will be reported on the statement of cash flows? h. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet?
In Year 1, Lee Inc. billed its customers $56,200 for services performed. The company collected $41,800 of the amount billed. Lee incurred $37,700 of other operating expenses on account. Lee paid $24,100 of the accounts payable. Lee acquired $39,000 cash from the issue of common stock. The company invested $14,000 cash in the purchase of land.
(Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an
a. Create an accounting equation from this information.
b. What amount of cash flow from revenue will be reported on the statement of
h. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet?
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