Details of this Paper

Analyze each transaction and classify each as a fi...

Description

Solution


Question

Analyze each transaction and classify each as a financing, investing and/or operating activity. 1: Issued 30,000 shares of capital stock in exchange for $300,000 in cash. 2: Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed. 3: Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 4: Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5: Paid $5,000 in rent on the warehouse building for the month of March. 6: Paid $6,000 to an insurance company for the fire and liability insurance for a one-year period beginning April 1, 2006. 7: Paid $70,000 on account for the merchandise purchased in # 3. 8: Collected $55,000 from customers on account. 9: Recorded depreciation expense of $1,000 for the month on the equipment. Example: Financing Investing Operating 1: $300,000 Also, need to prepare a statement of cash flows. Assume the cash balance at the beginning of the month was $40,000 Please help me!

 

Paper#4285 | Written in 18-Jul-2015

Price : $25
SiteLock