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The following transactions apply to Baker Co. for 2010, its first year of operations.

1.	Issued $150,000 of common stock for cash.
2.	Provided $102,000 of services on account.
3.	Collected $90,000 cash from accounts receivable.
4.	Loaned $11,000 to BBC on September 1, 2010. The note had a one-year term to maturity and an 6 percent interest rate.
5.	Paid $38,000 of salaries expense for the year.
6.	Paid a $3,000 dividend to the stockholders.
7.	Recorded the accrued interest on December 31, 2010 (see item 4).
8.	Uncollectible accounts expense is estimated to be 1 percent of sales on account.

rev: 03-01-2011

References

Section BreakProblem 5-22 Accounting for notes receivable and uncollectible accounts using the percent of sales allowance method [L.O. 2, 4]

1.

value: 25.00 points

Required information

Problem 5-22 Requirement 1

Requirement 1:

Show the effects of the above transactions in a horizontal statements model like the one shown below. When you record amounts in the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or Net Cash (NC). The letters NA indicate that an element is not affected by the event. (Round your final answers to the nearest dollar amount. Negative amounts should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Baker Co. Horizontal Statement Model

Balance Sheet

Income Statement

Statement of Cash Flows

Event

Assets

=

Equity

Rev.

Exp.

=

Net Inc.

Cash

Accts. Rec.

Allow

Notes Rec.

Int. Rec.

=

Com. Stock

Ret. Earn.

1.

(Click to select)NAFAOANCIA

2.

(Click to select)OANANCIAFA

3.

(Click to select)NAFAOANCIA

4.

(Click to select)OANCNAFAIA

5.

(Click to select)NCIAOAFANA

6.

(Click to select)FANAOANCIA

7.1

(Click to select)OANCFAIANA

8.2

(Click to select)IANCOAFANA

Tot.

=

=

(Click to select)NAIAFAOANC

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