Accounting Cycle Tutorial ! Step 8: Prepare the Financial Statements . Statement

Question

Accounting Cycle Tutorial ! Step 8: Prepare the Financial Statements . Statement of Cash Flows Glossary HINT Activity 4.b-Prepare a Statement of Cash Flows Prepare the Statement of Cash Flows for Smart Touch Learning for the month ended December 31, 2016 from the provided information. Within each section of the statement, use the drop-down menus to enter the accounts. Then enter the account balances and calculate ending balances. Enter decreases in cash with a minus sign or parentheses. Cash balance, December 1, 2016 is $18,600 Transactions Dec. 1 Common stock was issued to stockholders for $8,000 cash Purchased equipment for $2,000 on account 14 Paid S20,100 cash for land. 17 Paid cash expenses: office rent, $1,500; employees' salaries, $1,300; utilities, $60 23 Paid cash dividends of $2,500. 26 Earned service revenue for the month, $5,100, receiving cash.

Explanation / Answer

Statement of cash flow :

Cash flow from operating activities Cash receipts Collection from customer 5100 Cash payment For Office rent -1500 For Salary -1300 For Utilities -60 -2860 Net cash flow from operating activities 2240 Cash flow from investing activities Land purchase -20100 Net cash flow from investing activities -20100 Cash flow from financing activities Issue common stock 8000 Dividend paid -2500 Net cash flow from financing activities 5500 Net increase (decrease) in cash -12360 Cash balance, december 1, 2016 18600 Cash balance, december 31,2016 6240

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