Self$-$Study Review Problem Project Part #$2$ Points

The following events apply to the first year of operations for Mestro Financial Services Company:

$1.$ Acquired $$32,000$ cash by issuing common stock on January $1,$ Year $1.$

$2.$ Purchased $$1,260$ of supplies on account.

$3.$ Paid $$12,960$ cash in advance for a one$-$year lease on office space.

$4.$ Earned $$27,000$ of consulting revenue on account.

$5.$ $$19,200$ of general operating expenses on account.

$6.$ Collected $$21,600$ cash from receivables.

$7.$ Paid $$14,600$ cash on accounts payable.

$8.$ Paid a $$1,160$ cash dividend to stockholders.

Information for Adjusting Entries

$9.$ There were $$240$ of supplies on hand at the end of the accounting period.

$10.$ The one$-$year lease on the office space was effective beginning on October $1,$ Year $1.$

$11.$ There were $$1,600$ of accrued salaries at the end of Year $1.$

Required

a$.$ Record the preceding events in general journal format.

b$.$ Post the transaction data from the general journal into general ledger T$-$accounts.

c$.$ Prepare an adjusted trial balance.

d$-1.$ Prepare an income statement for Year $1.$

d$-2.$ Prepare a statement of changes in stockholders$$ equity for Year $1.$

d$-3.$ Prepare a balance sheet for Year $1.$

d$-4.$ Prepare a statement of cash flows for Year $1.$

e$.$ Prepare the appropriate closing entries in general journal format.

a$.$ Record the preceding events in general journal format. b$.$ Post the transaction data from the general journal into general ledger T$-$accounts. Salaries Exponse

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$c$|\}\{$ Salaries Exponse $\}\backslash \backslash$

$\backslash$hline & Debit & $\backslash$multicolumn$\{2\}\{$c$|\}\{$ Credit $\}\backslash \backslash$

$\backslash$hline Beginning batance & $.$ & & $\backslash \backslash$

$\backslash$hline $11.$ & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline Ending balance & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

c$.$ Prepare an adjusted trial balance. $4.$ Prepare a statement of cash flows for Year $1.$

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ MESTRO FINANCIAL SERVICES COMPANY $\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{1\}\{|$c$|\}\{$ Statement of Cosh Fiows $\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{1\}\{|$c$|\}\{$ For the Year Ended December $31,$ Year $1\}\backslash \backslash$

$\backslash$hline Cash flows from operating activities: & & $\backslash \backslash$

$\backslash$hline Inflow from customers & & $\backslash \backslash$

$\backslash$hline Outflow for expenses & & $\backslash \backslash$

$\backslash$hline Net cash flow from operating activities & & $\backslash \backslash$

$\backslash$hline Cash flows from investing activities: & & $\backslash \backslash$

$\backslash$hline & & $\backslash \backslash$

$\backslash$hline Net cash flow from investing activities & & $\backslash \backslash$

$\backslash$hline Cash flows from financing activities: & & $\backslash \backslash$

$\backslash$hline Inflow from issue of common stock & & $\backslash \backslash$

$\backslash$hline Outflow for dividends & & $\backslash \backslash$

$\backslash$hline Net cash flow from financing activities & & $\backslash \backslash$

$\backslash$hline Net change in cash & & $\backslash \backslash$

$\backslash$hline Plus: Beginning cash balance & & $\backslash \backslash$

$\backslash$hline Ending cash balance & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

e$.$ Prepare the appropriate closing entries in general journal format. d$-1.$ Prepare an income statement for Year $1.$

d$-2.$ Prepare a statement of changes in stockholders' equity for Year $1.$