Below are several transactions for Meyers Corporation for 2021. a. Issue common stock for cash, $41,000. b. Purchase building and land with cash, $26,000. c. Provide services to customers on account, $6,100. d. Pay utilities on building, $550. e. Collect $4,100 on account from customers. f. Pay employee salaries, $8,100. g. Pay dividends to stockholders, $3,100. Required: 1. For each transaction, determine the amount of cash flows. If cash is involved in the transaction, indicate whether Meyers should classify it as operating, investing, or financing in a statement of cash flows. (Enter N/A if the question is not applicable to the statement. List cash outflows as negative amounts.) Operating Investing

Below are several transactions for Meyers Corporation for 2021. a. Issue common stock for cash, $41,000. b. Purchase building and land with cash, $26,000. c. Provide services to customers on account, $6,100. d. Pay utilities on building, $550. e. Collect $4,100 on account from customers. f. Pay employee salaries, $8,100. g. Pay dividends to stockholders, $3,100. Required: 1. For each transaction, determine the amount of cash flows. If cash is involved in the transaction, indicate whether Meyers should classify it as operating, investing, or financing in a statement of cash flows. (Enter N/A if the question is not applicable to the statement. List cash outflows as negative amounts.) Operating Investing

Name: 2. Calculate net cash flows for the year. (List cash outflows as nega
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Description: 2. Calculate net cash flows for the year. (List cash outflows as negative amounts.)Collect Cash from Customers on AccountPay Employee SalariesPay Utilities on BuildingPurchase Building and Land with CashIssue Common Stock for CashPay Dividends to St

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

2. Calculate net cash flows for the year. (List cash outflows as negative amounts.)
Collect Cash from Customers on Account
Pay Employee Salaries
Pay Utilities on Building
Purchase Building and Land with Cash
Issue Common Stock for Cash
Pay Dividends to Stockholders
Net cash flows for the year
$
Cash balance
$
4,100
(8,100)
(550)
(26,000)
41,000
(3,100)
7,350
3. Assuming the balance of cash on January 1, 2021, equals $3,500, calculate the balance of cash on December 31, 2021.

Below are several transactions for Meyers Corporation for 2021.
a. Issue common stock for cash, $41,000.
b. Purchase building and land with cash, $26,000.
c. Provide services to customers on account, $6,100.
d. Pay utilities on building, $550.
e. Collect $4,100 on account from customers.
f. Pay employee salaries, $8,100.
g. Pay dividends to stockholders, $3,100.
Required:
1. For each transaction, determine the amount of cash flows. If cash is involved in the transaction, indicate whether Meyers should
classify it as operating, investing, or financing in a statement of cash flows. (Enter N/A if the question is not applicable to the
statement. List cash outflows as negative amounts.)
Transaction
Issue common stock for cash.
Purchase building and land with cash.
Provide services to customers on account.
Pay utilities on building.
Collect cash from customer on account.
Pay employee salaries.
Pay dividends to stockholders
Cash Flows
$
$
$
$
$
$
$
Operating,Investing
or Financing
41,000 Financing
(26,000) Investing
0 N/A
(550) Operating
4,100 Operating
(8,100) Operating
(3,100) Financing

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