The Following Transactions Apply to Einstein Corporation

question 73

Essay

The following transactions apply to Einstein Corporation.
a)Issued common stock for $50,000 cash.
b)Provided services to customers for $28,000 on account.
c)Purchased land for $16,000 cash.
d)Purchased $1,500 of supplies on account.
e)Paid $12,000 for operating expenses.
f)Paid $550 on accounts payable.
g)Collected $25,000 cash from customers.
h)Accrued $600 of salary expense at year end.
i)Paid $2,000 dividends to stockholders.
Required:
a)Identify the effect on the statement of cash flows for each of the above transactions.Precede a cash outflow amount with a minus sign.
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:

Ergotamine

A chemical compound derived from the ergot fungus, used medicinally to treat migraines due to its vasoconstrictor properties.

Medically Supervised

A health-related activity or intervention that is directed or monitored by a qualified healthcare professional to ensure safety and effectiveness.

Grazing Hoofed

Refers to hoofed animals (ungulates) that feed primarily on grass and other low-lying vegetation.

Entomophthora Muscae

A species of fungus that infects and kills flies, part of a natural control mechanism for insect populations.