Below are listed several transactions of Phelps Company during 2016.
1.Provided services to customers for cash,$70,000
2.Purchased land by paying cash,$32,000
3.Paid rent for 6 months,$24,000
4.Acquired cash of $50,000 by issuing common stock
5.Purchased office supplies on account,$5,400
6.Receive payment of $6,000 from a customer for services that will be provided over the next six months.
Required:
a)Prepare journal entries for each of the preceding transactions,using the general journal below.
b)Show how each transaction affects the financial statements model by inserting amounts.Precede the amount with a minus sign if the transaction reduces that section of the equation.Precede a cash outflow amount with a minus sign.Enter 0 for items not affected.
In the Activity Type column,use the letters OA for operating activities,IA for investing activities,and FA for financing activities.Insert NA if cash flow is not affected.
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