ll-Star Automotive Company experienced the following accounting events during Year 3: Performed services for $14,900 cash. Purchased land for $7,900 cash. Hired an accountant to keep t
ll-Star Automotive Company experienced the following accounting events during Year 3:
Performed services for $14,900 cash.
Purchased land for $7,900 cash.
Hired an accountant to keep the books.
Received $39,000 cash from the issue of common stock.
Borrowed $9,800 cash from State Bank.
Paid $4,900 cash for salary expense.
Sold land for $9,800 cash.
Paid $3,900 cash on the loan from State Bank.
Paid $5,100 cash for utilities expense.
Paid a cash dividend of $1,900 to the stockholders.
Required
a. Indicate how each of the events would be classified on the statement of
b. Prepare a statement of cash flows. Assume All-Star Automotive had a beginning cash balance of $9,900. (The company has additional accounts, but they are not needed for this question.)
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