The Following Transactions Apply to Einstein Corporation

question 25

Essay

The following transactions apply to Einstein Corporation.1)Issued common stock for $50,000 cash.2)Provided services to customers for $28,000 on account.3)Purchased land for $16,000 cash.4)Purchased $1,500 of supplies on account.5)Paid $12,000 for operating expenses.6)Paid $550 on accounts payable.7)Collected $25,000 cash from customers.8)Accrued $600 of salary expense at year end.9)Paid $2,000 dividends to stockholders.Required:a)Identify the effect on the statement of cash flows for each of the above transactions.b)Classify the above accounting events into one of four types of transactions (asset source, asset use, asset exchange, claims exchange).

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Definitions:

Rest

The remaining part of something, often used when dividing or after subtracting a portion.

Ounces

A unit of weight used primarily in the United States, part of the imperial and US customary systems, equivalent to 28.35 grams.

Gold

a dense, malleable, yellow precious metal that is often used in jewelry, currency, and as an investment.

Earrings

Jewelry worn on the earlobes or other parts of the ear, often decorative and made from various materials like metal, stones, or beads.