Cascade Corporation Began Business Operations and Experienced the Following Transactions

question 142

Essay

Cascade Corporation began business operations and experienced the following transactions during Year 1:
1)Issued common stock for $20,000 cash2)Provided services to customers for $80,000 on account3)Incurred $36,000 of operating expenses on account4)Collected $46,000 cash from customers5)Paid $30,000 on accounts payable
Required:Record the above transactions on a horizontal statements model to reflect their effect on Cascade's financial statements. In the last column, enter OA, IA, or FA for the type of cash flow activity, if applicable.

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Definitions:

Original Investment

The initial amount of money invested in a project or security.

Conditional Sale Contracts

agreement for the sale of goods where the price is payable in instalments and the goods remain the property of the seller until the full price is paid.

Purchase Price

Purchase price is the amount of money paid to buy goods, services, or assets.

Combined Equivalent

The equivalent total effect or value when multiple factors or values are considered together.