Refer to E3-9.

Data From inE3-9

Stacey’s Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:

Required:
Use the transactions in E3-9 to identify the operating (O), investing (I), and financing (F) activities and the direction (+ for increase, − for decrease) and amount of the effect. If there is no effect, use NE.

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Cash Accounts receivable Supplies Equipment Land Building $ 6,400 32,000 1,500 9,500 7,400 25,300 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings $ 9,600 3,840 48,500 1,600 7,000 11,560