Question

Cordell Inc. experienced the following events in Year 1, its first year of operation: Received $52,000 cash from the issue of common stock. Performed services on account for $80,000. Paid a $5,200 cash dividend to the stockholders. Collected $58,000 of the accounts receivable. Paid $52,000 cash for other operating expenses. Performed services for $16,000 cash. Recognized $2,200 of accrued utilities expense at the end of the year.

Answer 1

Complete wordings "Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows. In the Statement of Cash Flows column, use OA to designate operating activity. FA for financing activity, or IA for investing activity. If the element is not affected by the event, leave the cell blank."

Event Revenue Expense Statement of cash flow

1 $52,000 FA

2 $80,000 N/A

3 -$5,200 FA

4 $58,000 OA

5 -$52,000 -$52,000 OA

6 $16,000 $16,000 OA

7 -$2,200 N/A