Below are listed several transactions of Phelps Company during 2016.
1.Provided services to customers for cash,$70,000
2.Purchased land by paying cash,$32,000
3.Paid rent for 6 months,$24,000
4.Acquired cash of $50,000 by issuing common stock
5.Purchased office supplies on account,$5,400
6.Receive payment of $6,000 from a customer for services that will be provided over the next six months.
Required:
a)Prepare journal entries for each of the preceding transactions,using the general journal below.
b)Show how each transaction affects the financial statements model by inserting amounts.Precede the amount with a minus sign if the transaction reduces that section of the equation.Precede a cash outflow amount with a minus sign.Enter 0 for items not affected.

In the Activity Type column,use the letters OA for operating activities,IA for investing activities,and FA for financing activities.Insert NA if cash flow is not affected.

Question

Below are listed several transactions of Phelps Company during 2016.
1.Provided services to customers for cash,$70,000
2.Purchased land by paying cash,$32,000
3.Paid rent for 6 months,$24,000
4.Acquired cash of $50,000 by issuing common stock
5.Purchased office supplies on account,$5,400
6.Receive payment of $6,000 from a customer for services that will be provided over the next six months.
Required:
a)Prepare journal entries for each of the preceding transactions,using the general journal below.
b)Show how each transaction affects the financial statements model by inserting amounts.Precede the amount with a minus sign if the transaction reduces that section of the equation.Precede a cash outflow amount with a minus sign.Enter 0 for items not affected.
  
In the Activity Type column,use the letters OA for operating activities,IA for investing activities,and FA for financing activities.Insert NA if cash flow is not affected.

Quizplus · Accepted Answer

The Answer of Below are listed several transactions of Phelps Company during 2016.
1.Provided services to customers for cash,$70,000
2.Purchased land by paying cash,$32,000
3.Paid rent for 6 months,$24,000
4.Acquired cash of $50,000 by issuing common stock
5.Purchased office supplies on account,$5,400
6.Receive payment of $6,000 from a customer for services that will be provided over the next six months.
Required:
a)Prepare journal entries for each of the preceding transactions,using the general journal below.
b)Show how each transaction affects the financial statements model by inserting amounts.Precede the amount with a minus sign if the transaction reduces that section of the equation.Precede a cash outflow amount with a minus sign.Enter 0 for items not affected.
  
In the Activity Type column,use the letters OA for operating activities,IA for investing activities,and FA for financing activities.Insert NA if cash flow is not affected.

Below Are Listed Several Transactions of Phelps Company During 2016