Free

70.2K

Verified Solution

Link Copied!

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 inthe future.

5. Collected $9,200 cash from the account receivable created inEvent 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 officespace.

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 spaceacquired in Event 9.

Required

Show the effects of the events on the financial statements usinga horizontal statements model like the following one. In the CashFlows column, use the letters OA to designate operating activity,IA for investing activity, FA for financing activity, and NC fornet 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 anydecreases to account balances and cash outflows with a minus sign.Not every cell will require entry.)

SUPER CLEANING COMPANY Effect of Events on the FinancialStatements Event No. Assets = Liabilities + Stockholders’ Equity Income Statement Statement of Cash Flows Cash + Accounts Receivable + Prepaid Rent = Accounts Payable + Unearned Revenue + Common Stock + Retained Earnings Revenue – Expenses = Net Income 1. 15,200 + + = + + 15,200 + – = 15,200 FA 2. + + = + + + – = 3. + + = + + + – = 4. + + = + + + – = 5. + + = + + + – = 6. + + = + + + – = 7. + + = + + + – = 8. + + = + + + – = 9. + + = + + + – = 10. + + = + + + – = 11. + + = + + + – = 12. + + = + + + – = Bal. + + = + + + – =