Dale\'s Business Services experienced the following events during its first year
ID: 2570310 • Letter: D
Question
Dale's Business Services experienced the following events during its first year of operations Acquired $20,000 cash from the issue of common stock. 2 Borrowed $12,000 cash from First Bank. 3. Paid $5,000 cash to purchase land 4. Received $25,000 cash for providing boarding services. Acquired an additional $5,000 cash from the issue of common stock. 6 Purchased additional land for $4,000 cash 7. Paid $10,000 cash for salary expense 8. Signed a contract to provide additional services in the future 9. Paid $1,200 cash for rent expense 10. Paid a $1,000 cash dividend to the stockholders. , Determined the market value of the land to be $18,000 at the end of the accounting period Required Classify each event as an asset source, use, or exchange transaction or as not applicable (NA). 2. 3. 5 6. 8 10.Explanation / Answer
1 source ,As cash is received from issuance 2 source ,as borrowing will result in inflow of cash 3 Use ,cash paid for land 4 source ,cash inflow for service provided 5 source 6 use 7 use ,outflow of cash 8 Not applicable 9 use 10 use ,outflow of cash 11 Not applicable [determination of market value does not result in any transaction]
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.