The following selected transactions occur during the first year of operations. Determine how each should be reported in the statement of cash flows.1. Issued one million shares of common stock at $20 per share.2. Paid $75,000 to suppliers for inventory.3. Paid a dividend of $1 per share to common stockholders. 4. Loaned $50,000 to an employee and accepted a note receivable.

Question

The following selected transactions occur during the first year of operations. Determine how each should be reported in the statement of cash flows.
1. Issued one million shares of common stock at $20 per share.
2. Paid $75,000 to suppliers for inventory.
3. Paid a dividend of $1 per share to common stockholders.
4. Loaned $50,000 to an employee and accepted a note receivable.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Cash Flow Statements

Other

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid r...

A: The journals are: In the books of Sweet Catering Journals Date Particulars LF Amt(Dr.)($) Amt...

Q: Match (by letter) the following items with the description or example that best fits. Each letter is...

A:   Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for...

Q: A primary objective of analytical procedures used in the final review stage of an audit is toa. Iden...

A: A primary objective of analytical procedures used in the final review stage of an audit is to Assist...

Q: LeBron’s Bookstores has two divisions: books and electronics. The electronics division had another g...

A: Income statement:   Income statement is a financial statement that shows the net income or net loss ...

Q: (Learning Objective 3: Adjust the accounts for depreciation) Suppose that on January 1Sunbeam Travel...

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life o...

Q: Identify the following as intangible assets (IA), natural resources (NR), or some other asset (O). S...

A: Salt mine is a type of natural resources. 

Q: Explain the types of penalties that can beimposed on accountants.

A: Financial Accounting:   It refers to the process of recording the financial transactions of the busi...

Q: Buzzard Bicycle specializes in custom painting and design of bicycles. December 31 is the company’s ...

A: A modifying journal entry is a passage in an organization's overall record that happens toward the f...

Q: A start-up company often engages in the following transactions during its first year of operations. ...

A: Investing activities:   Investing activities refer to the activities carried out by a company for a...

Q: Abercrombie & Fitch Co. reported the following in its financial statement notes.Ending inventory...

A: Definition: FOB destination: When the seller bears the freight charges for the delivery of merchandi...

Q: Which of the following is not one of the four basic financial statements?a. The balance sheetb. The ...

A: Basic financial statements are: Balance Sheet Income Statement Statement of Cash Flows Statement of...

Q: When making the determination of whether or not a selling price should be increased there are many d...

A: The enterprise has increased the selling price and wants to analyze the effects of this decision.

Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in...

A: Click to see the answer

Q: On January 1, 2020, Kingbird, Inc. purchased 11% bonds having a maturity value of $541,000 for $558,...

A: The following journal entries are passed to show the investment in bonds.

Q: On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactio...

A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer...

Q: An audit team most likely would assess control risk at the maximum if the payroll department supervi...

A: An audit team most likely would assess control risk at the maximum if the payroll department supervi...

Q: Total asset turnover has increased at the O’Neil Company since last year. This increasemust mean tha...

A: Asset turnover: It is a ratio that measures the productive capacity of the assets to generate the sa...

Q: A cell phone company offers two different plans. Plan A costs $96 per month for unlimited talk and t...

A: Cost-based decisions: When any person, firm, or company not have the profit-related data than its de...

Q: Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, ...

A: Sales - variable cost = Contribution Contribution - fixed cost = Operating income

Q: The purpose of a checkpoint procedure is to facilitate restarting aftera. data processing errors.b. ...

A: The purpose of a checkpoint procedure is to facilitate restarting after data processing errors.

Q: What is the variable overhead spending variance?

A: A variance is the deviation between an actual result and an expected result and its impact on the bu...

Q: The following information shows Carperk Company’s individual investments in securities during its cu...

A: 1. Identify whether each investment a through e should be classified as a short-term or long-term in...

Q: What does it mean to recognize an accountingtransaction?

A: The accounting transactions that directly or indirectly alters the financial aspect of the enterpris...

Q: After all the ledgers had been drawn up, the following differences and errors were identified. Indic...

A: The following ledgers have been rectified as per the given information.

Q: Rosalind Company reported revenues of $111,500, expenses of $92,545, and net income of $18,955 for t...

A: Return on assets = Net income / Average Total assets where, Average Total assets = (Beginning Total ...

Q: Prepare the journal entry to record Jevonte Company’s issuance of 36,000 shares of its common stock ...

A: Journal entry:   It is a systematic record of a financial transaction of an organization recorded in...

Q: Use the following information about Ferron Company to prepare a complete statement of cash flows (di...

A: Answer:  

Q: Bankers who are processing loan applications from companies seeking large loans willprobably ask for...

A: Given case is: Bankers who are processing loan applications from companies seeking large loans willp...

Q: The American writer, Robert McKee, is quoted as saying, “True character is revealed in the choices a...

A: Business Ethics:   It is a form of professional ethics that stresses on the moral obligations of an ...

Q: What does it mean when it is said that the United States is running a trade deficit? Whatimpact will...

A: Interest Rate:   A rate at which a borrower is ready to pay and depositor is ready to receive the m...

Q: Depreciation of equipment was estimated to be $7,200 for the year

A: Depreciation refers to an estimated amount of reduction in the value of asset during an accounting y...

Q: Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2018...

A: Goodwill = Fair value of consideration transferred - Fair value of net identifiable assets Gain on b...

Q: Which of the following items is most likely a short-term liability?a. Deferred income taxesb. Financ...

A: Short term liability means liabilities which are to paid in within next year or within the time of o...

Q: On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease...

A: Definition: Journal entry: Journal entry is a set of economic events which can be measured in moneta...

Q: A machine with a cost of $175,000 and accumulated depreciation of $94,000 is sold for $87,000 cash. ...

A: Answer:   Option b.

Q: On January 17, Papa’s Pizza signs a contract with Bug Zappers for exterminating services related to ...

A: Matching principle: According to this principle, the expense should be recognized when it is actuall...

Q: Are the use of non-GAAP financial measures ethical?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the ge...

Q: Baskin-Robbins is one of the world’s largest specialty ice cream shops. The company offers dozens of...

A: Multi-step income statement is prepared in multiple steps showing gross profit, operating income, no...

Q: Which duties should be separated in the payroll cycle?

A: Payroll System:   A payroll system is a system within an organization that is responsible for managi...

Q: Game-On Sports operates in two distinct segments: athletic equipment and accessories. The income sta...

A: Click to see the answer

Q: At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,700,460 by signi...

A: 1. What is the effective rate of interest implicit in the agreement? Solution : Fair value of acquir...

Q: I have attached the question in jpeg, please refer to it. My question is, what is the balance of Cas...

A: Calculation of transactions till March 10: