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WU-National& Global and Wes Workshop Two Assignment O ezt -08567779536633134 152

ID: 2408222 • Letter: W

Question

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 search

Explanation / 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