City Consulting Services experienced the following events during 2012. 1. Acquired cash by issuing common stock. 2.
Question:
City Consulting Services experienced the following events during 2012.
1. Acquired cash by issuing common stock.
2. Collected cash for providing tutoring services to clients.
3. Borrowed cash from a local government small business foundation.
4. Purchased land for cash.
5. Paid cash for operating expenses.
6. Paid a cash dividend to the stockholders.
7. Determined that the market value of the land is higher than its historical cost.
Required
Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the financial statements. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transaction is shown as anexample.
.png)
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
City Consulting Services Horizontal Statements Model for 2012 Balance Sheet Income Statement Stat...View the full answer
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
