Question

Accounting Services Corporation entered into the following transactions during 2010:
a. The company started as a corporation with a $14,700 cash contribution from the owners in exchange for common stock.
b. Service revenues on account amounted to $8,250.
c. Cash collections of accounts receivable amounted to $6,875.
d. Purchased supplies on account for $125 and used all of them.
e. On December 15, 2010, the company paid $6,000 in advance for leased office space. The lease does not go into effect until 2011.

Requirements
Put each of the transactions in an accounting equation worksheet. Then, answer the following questions:
1. What is the amount of cash flow from operating activities for 2010?
2. What amount of total liabilities would appear on the December 31, 2010, balance sheet?
3. What is the amount of contributed capital as of December 31, 2010?
4. What amount of net income would appear on the income statement for the year ended December 31, 2010?



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  • CreatedSeptember 01, 2014
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