WU-National& Global and Wes Workshop Two Assignment O ezt -08567779536633134 152
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WU-National& Global and Wes Workshop Two Assignment O ezt -08567779536633134 1528675095936 Problem 2-32 Recording events in a horizontal statements model LO 2-1,2 The following events pertain to James Cleaning Company 1 Acquired $15,000 cash from the issue of common stock 2. Provided services for $6,000 cash. 3. Provided $18,000 of services on account. 4. Collected $11,000 cash from the account receivable created in Event 3 5. Paid $1,400 cash to purchase supplies. 6. Had $100 of supplies on hand at the end of the accounting period 7. Received $3,600 cash in advance for services to be performed in the future. 8. Performed one-half of the services agreed to in Event 7 9. Paid $6,500 for salaries expense 10. Incurred $2,800 of other operating expenses on account 11. Paid $2,100 cash on the account payable created in Event 10 12. Paid a $1,000 cash dividend to the stockholders Required: Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flows column, use the letters OA to designate operating activity, IA for invest activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by event. The first event is recorded as an example. (Enter any decreases to account balances and cas outflows with a minus sign.) JAMES CLEA O Type here to searchExplanation / Answer
James Cleaning Company
Effects of events on the financial statements
Event No
Assets +
Liabilities =
Stockholder's Equity
Income Statement
Cash
Accounts Receivables
Supplies
Accounts Payable
Unearned Revenue
common Stock
Retained Earning
Revenue -
Expense =
Net Income
Cash Flow
1
15000
15000
FA
2
6000
6000
6000
OA
3
18000
18000
18000
NC
4
11000
-11000
NC
5
-1400
1400
NC
6
-1300
-1300
1300
NC
7
3600
3600
NC
8
-1800
1800
1800
NC
9
-6500
-6500
6500
OA
10
2800
-2800
2800
NC
11
-2100
-2100
NC
12
-1000
-1000
-1000
FA
24600
7000
100
700
1800
15000
14200
25800
9600
16200
Total Assets
31700
Total Liabilities
31700
James Cleaning Company
Effects of events on the financial statements
Event No
Assets +
Liabilities =
Stockholder's Equity
Income Statement
Cash
Accounts Receivables
Supplies
Accounts Payable
Unearned Revenue
common Stock
Retained Earning
Revenue -
Expense =
Net Income
Cash Flow
1
15000
15000
FA
2
6000
6000
6000
OA
3
18000
18000
18000
NC
4
11000
-11000
NC
5
-1400
1400
NC
6
-1300
-1300
1300
NC
7
3600
3600
NC
8
-1800
1800
1800
NC
9
-6500
-6500
6500
OA
10
2800
-2800
2800
NC
11
-2100
-2100
NC
12
-1000
-1000
-1000
FA
24600
7000
100
700
1800
15000
14200
25800
9600
16200
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