Question

Alex Vera organized Succulent Express at the beginning of February 20Y4. During February, Succulent Express entered into the following transactions: a. Terry Mason invested $30,000 in Succulent Express in exchange for common stock. b. Pald $5,400 on February i for an insurance premium on a one-year policy. C. Purchased supplies on account, $1,800. d. Received fees of $57,000 during February e. Paid expenses as follows: wages, 521,600; rent, $6,400; utilities, $2,800; and miscellaneous, $3,200. f. Paid dividends of $8,000. Record the preceding transactions using the integrated financial statement framework. After each transaction, enter a balance for each item. If an amount box does not require an entry, leave it blank. Enter account decreases and net cash outflows as negative amounts using the minus sign. Financial Statement Effects Balance Sheet Assets Liabilities Stockholders' Equity + + + a. b. Balances C. Balances d. Balances e. Balances f. Balances Statement of Cash Flows Income Statement a. d. d. b d. e. f. e

Answer 1

+ + + + + + + + + Balance Sheet Assets Liabilities Stockholder's Equity Cash + Supplies + Prepaid Insurance = Accounts Payable + Common Stock + Retained Earnings a. Common share issued $30,000 + $30,000 + b. Insurance Premium Paid ($5,400) + $450 = ($4,950) Balance $24,600 + $450 $30,000 + ($4,950) c. Supplies Purchased $1,800 + $1,800 + Balance $24,600 + $1,800 + $450 $1,800 + $30,000 + ($4,950) d. Fee Received $57,000 + $57,000 Balance $81,600 + $1,800 + $450 $1,800 + $30,000 + $52,050 e. Expense Paid ($34,000) + ($34,000) Balance $47,600 + $1,800 + $450 $1,800 + $30,000 + $18,050 f. Dividend Paid ($8,000) + ($8,000) Balance $39,600 + $1,800 + $450 $1,800 + $30,000 + $10,050 + + + + + + + = + +

Statement of Cash Flow Cash flow from operating activities Fee Received $57,000 Insurance Premium Paid ($5,400) Expense Paid ($34,000) Total Cash flow from operating activities $17,600 Cash flow from Investing activities Cash flow from Financing activities Common Stock Issued Dividend Paid Total Cash flow from Financing activities Net Cash flow $30,000 ($8,000) $22,000 $39,600

$57,000 Income Statement Revenue: Fee Received $57,000 Total Revenue Expenses: Insurance expense $4,950 Wages expense $21,600 Utilities expense $2,800 Miscelleneous expense $3,200 Rent expense $6,400 Total Expenses Net Income $38,950 $18,050

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