Cascade Corporation Began Business Operations and Experienced the Following Transactions

question 33

Essay

Cascade Corporation began business operations and experienced the following transactions during Year 1:Issued common stock for $20,000 cashProvided services to customers for $80,000 on accountIncurred $36,000 of operating expenses on accountCollected $46,000 cash from customersPaid $30,000 on accounts payableRequired:Record the above transactions on a horizontal statements model to reflect their effect on Cascade's financial statements. Classify each of the following transactions for the purpose of the statement of cash flow as operating activities (OA), investing activities (IA), or financing activities (FA). If a transaction is not reported on the statement of cash flows, leave that cell blank.

---

Definitions:

Quantity Supplied

The amount of a commodity that producers are willing and able to sell at a particular price over a given period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price point in a certain period.

Decrease

A reduction in quantity, size, or intensity of a particular entity or activity.

Increase

An upward movement in quantity, price, or value.