80.2K

Verified Solution

Link Copied!

2-32A (Algo) Recording events in a horizontal statements model LO 2-1, 2-2, 2-5, 2-6, 2- 7 The following events pertain to Super Cleaning Company: 1. Acquired $15,200 cash from the issue of common stock. 2. Provided $13,200 of services on account. 3. Provided services for $4,200 cash. 4. Received $2,600 cash in advance for services to be performed in the future. 5. Collected $9,200 cash from the account receivable created in Event 2. 6. Paid $5,200 for cash expenses. 7. Performed $1,300 of the services agreed to in Event 4. 8. Incurred $1,700 of expenses on account. 9. Paid $1,200 cash in advance for one-year contract to rent office space. 10. Paid $1,350 cash on the account payable created in Event 8. 11. Paid a $1,700 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 Prev 1 of 4 Next > 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. Cash 1. 15,200+ 2. + 3. + 4. 5. 6. 7. + 8. + 9. 10. Assets Liabilities SUPER CLEANING COMPANY Effect of Events on the Financial Statements Stockholders' Equity Accounts Receivable Prepaid Rent Accounts Payable Unearned Revenue Common Stock Retained Revenue Earnings + + 15,200+ + + + + + Prey 1 of 4 Next > Inco SUPER CLEANING COMPANY Effect of Events on the Financial Statements Assets Liabilities Event No. Accounts Cash Prepaid Accounts Unearned 4 Receivable Rent Payable Revenue 1. 15,200+ + 2. 3. 4. 5. 6. 7. 8. 4 9. + + 10. 11. 12. 0 Bal 15,200+ Stockholders' Equity Inco Common Retained Revenue Stock Earnings 15,200+ + + 0+ 15,200+ + SUPER CLEANING COMPANY ect of Events on the Financial Statements Stockholders' Equity earned evenue Common Stock 15,200+ + Income Statement Retained Revenue Earnings Expenses = Net Income = Statement of Cash Flows 15,200 FA 0 15,200 0+ 15,200+ 0

Answer & Explanation Solved by verified expert

See Answer