The following events pertain to Super Cleaning Company: 1. Acquired $16,200 cash from the issue of common stock. 2. Provided $14,200 of services on account. 3. Provided services for $5,200 cash. 4. Received $3,600 cash in advance for services to be performed in the future. 5. Collected $10,200 cash from the account receivable created in Event 2. 6. Paid $6,200 for cash expenses. 7. Performed $1,800 of the services agreed to in Event 4. 8. Incurred $2,700 of expenses on account. 9. Paid $1,700 cash in advance for one-year contract to rent office space. 10. Paid $2,350 cash on the account payable created in Event 8. 11. Paid a $2,700 cash dividend to the stockholders. 12. Recognized rent expense for nine months' use of office space acquired in Event 9. Required Show the effects of the events on the financial statements using the following horizontal statements model. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. If an account is not affected by the event, leave the cell blank. The first event is recorded as an example (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not every cell will require entry.) Event No. 1 2 3 4 5. 6 7 8 9. 10 11. 12. Bal. Cash 16.200 + + + + + + + + + + + 16,200 + Assets Accounts Receivable + + 01+ Prepaid Rent 0 = SUPER CLEANING COMPANY Effect of Events on the Financial Statements Liabilities666 Stockholders' Equity. Accounts Unearned Payable Revenue 0+ 10+ Common Stock 16.200 + 16,200 + Retained Earnings 0 Income Statement Revenue Expenses Net Income 0 0 0 Statement of Cash Flows 16,200 FA 16,200
The following events pertain to Super Cleaning Company: 1. Acquired $16,200 cash from the issue of common stock. 2. Provided $14,200 of services on account. 3. Provided services for $5,200 cash. 4. Received $3,600 cash in advance for services to be performed in the future. 5. Collected $10,200 cash from the account receivable created in Event 2. 6. Paid $6,200 for cash expenses. 7. Performed $1,800 of the services agreed to in Event 4. 8. Incurred $2,700 of expenses on account. 9. Paid $1,700 cash in advance for one-year contract to rent office space. 10. Paid $2,350 cash on the account payable created in Event 8. 11. Paid a $2,700 cash dividend to the stockholders. 12. Recognized rent expense for nine months' use of office space acquired in Event 9. Required Show the effects of the events on the financial statements using the following horizontal statements model. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. If an account is not affected by the event, leave the cell blank. The first event is recorded as an example (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not every cell will require entry.) Event No. 1 2 3 4 5. 6 7 8 9. 10 11. 12. Bal. Cash 16.200 + + + + + + + + + + + 16,200 + Assets Accounts Receivable + + 01+ Prepaid Rent 0 = SUPER CLEANING COMPANY Effect of Events on the Financial Statements Liabilities666 Stockholders' Equity. Accounts Unearned Payable Revenue 0+ 10+ Common Stock 16.200 + 16,200 + Retained Earnings 0 Income Statement Revenue Expenses Net Income 0 0 0 Statement of Cash Flows 16,200 FA 16,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following events pertain to Super Cleaning Company:
1. Acquired $16,200 cash from the issue of common stock.
2. Provided $14,200 of services on account.
3. Provided services for $5,200 cash.
4. Received $3,600 cash in advance for services to be performed in the future.
5. Collected $10,200 cash from the account receivable created in Event 2.
6. Paid $6,200 for cash expenses.
7. Performed $1,800 of the services agreed to in Event 4.
8. Incurred $2,700 of expenses on account.
9. Paid $1,700 cash in advance for one-year contract to rent office space.
10. Paid $2,350 cash on the account payable created in Event 8.
11. Paid a $2,700 cash dividend to the stockholders.
12. Recognized rent expense for nine months' use of office space acquired in Event 9.
Required
Show the effects of the events on the financial statements using the following horizontal statements model. In the Cash Flows column,
use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. If an
account is not affected by the event, leave the cell blank. The first event is recorded as an example. (Do not round intermediate
calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not every cell will require entry.)
Event
No.
1.
2
3.
4
5.
6.
7
8.
9.
10.
11
12.
Bal.
Cash
16,200 +
+
+
+
+
+
+
+
+
+
16,200 +
Assets
Accounts
Receivable
+
+
+
+
+
+
7
+
+
+
0+
Prepaid
Rent
0 =
Liabilities
Accounts
Payable
+
+
+
+
+
+
SUPER CLEANING COMPANY
Effect of Events on the Financial Statements
Stockholders' Equity
0 +
Unearned
Revenue
+
+
0+
Common
Stock
16,200+
+
+
+1
+
16,200 +
Retained
Earnings
0
Income Statement
Revenue Expenses Net Income
0
0
0
Statement of Cash
Flows
16,200 FA
16,200
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