The following transactions pertain to the operations of Ewing company for year 2.

1. Acquired $30,000 cash from the issue of common stock

2. Provided $65,000 of services on account

3. Paid $22,000 cash on accounts payable

4. Performed services for $8000 cash

5. Collected $51,000 cash from accounts receivable

6. Incurred $37,000 of operating expenses on account

7. Paid $6500 cash for one years rent in advance

8. Paid a $4000 cash dividend to the stockholders

9. Paid $1200 cash for supplies to be used in the future

10. Recognize $3100 of accrued salary expense

Prepare a statement of cash flow's. The beginning cash balance was $6700.

Question

Hurley

Business

20 March, 16:34

The following transactions pertain to the operations of Ewing company for year 2.

1. Acquired $30,000 cash from the issue of common stock

2. Provided $65,000 of services on account

3. Paid $22,000 cash on accounts payable

4. Performed services for $8000 cash

5. Collected $51,000 cash from accounts receivable

6. Incurred $37,000 of operating expenses on account

7. Paid $6500 cash for one years rent in advance

8. Paid a $4000 cash dividend to the stockholders

9. Paid $1200 cash for supplies to be used in the future

10. Recognize $3100 of accrued salary expense

Prepare a statement of cash flow's. The beginning cash balance was $6700.

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Answers (1)

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Jellybean · Answer 1

ending cash balance 62,000

Explanation:

operating activities:

services on cash 8,000

collected from AR 51,000

paid to supplies (22,000)

rent paid (6,500)

supplies paid (1,200)

cash generated from operating: 29,300

financing activities:

issuance of stock 30,000

cash dividends paid (4,000)

cash generated from financing: 26,000

cash generated during the year: 55,300

beginning cash balance 6, 700

ending cash balance 62,000