Question

The following transactions pertain to the operations of Blair Company for 2013:
1. Acquired $30,000 cash from the issue of common stock.
2. Performed services for $12,000 cash.
3. Paid a $7,200 cash advance for a one year contract to rent equipment.
4. Recognized $15,000 of accrued salary expense.
5. Accepted a $21,000 cash advance for services to be performed in the future.
6. Provided $60,000 of services on account.
7. Incurred $28,000 of other operating expenses on account.
8. Collected $51,000 cash from accounts receivable.
9. Paid a $5,000 cash dividend to the stockholders.
10. Paid $22,000 cash on accounts payable.

Required
a. Classify the cash flows from these transactions as operating activities (OA), investing activities (IA), or financing activities (FA). Use NA for transactions that do not affect the statement of cash flows.
b. Prepare a statement of cash flows. (There is no beginning cash balance.)



$1.99
Sales0
Views68
Comments0
  • CreatedOctober 12, 2013
  • Files Included
Post your question
5000