The following transactions apply to Einstein Corporation.
a)Issued common stock for $50,000 cash.
b)Provided services to customers for $28,000 on account.
c)Purchased land for $16,000 cash.
d)Purchased $1,500 of supplies on account.
e)Paid $12,000 for operating expenses.
f)Paid $550 on accounts payable.
g)Collected $25,000 cash from customers.
h)Accrued $600 of salary expense at year end.
i)Paid $2,000 dividends to stockholders.
Required:
a)Identify the effect on the statement of cash flows for each of the above transactions.Precede a cash outflow amount with a minus sign.
b)Classify the above accounting events into one of four types of transactions (asset source,asset use,asset exchange,claims exchange).

Question

Quizplus · Accepted Answer

The Answer of The following transactions apply to Einstein Corporation.
a)Issued common stock for $50,000 cash.
b)Provided services to customers for $28,000 on account.
c)Purchased land for $16,000 cash.
d)Purchased $1,500 of supplies on account.
e)Paid $12,000 for operating expenses.
f)Paid $550 on accounts payable.
g)Collected $25,000 cash from customers.
h)Accrued $600 of salary expense at year end.
i)Paid $2,000 dividends to stockholders.
Required:
a)Identify the effect on the statement of cash flows for each of the above transactions.Precede a cash outflow amount with a minus sign.
b)Classify the above accounting events into one of four types of transactions (asset source,asset use,asset exchange,claims exchange).

The Following Transactions Apply to Einstein Corporation