The Following Transactions Apply to Kellogg Company

question 141

Essay

The following transactions apply to Kellogg Company.
1)Issued common stock for $20,000 cash
2)Provided services to customers for $38,000 on account
3)Purchased land for $15,000 cash
4)Incurred $29,000 of operating expenses on account
5)Collected $35,000 cash from customers for services provided in event #2
6)Paid $27,000 on accounts payable
7)Paid $2,000 dividends to stockholders
Required:
a)Identify the dollar amount effect on the Statement of Cash Flows,if any,for each of the above transactions.Precede a cash outflow amount with a minus sign.Enter NA for items not affected.
b)Indicate whether each transaction involves operating,investing,or financing activities.Enter NA for items not affected.
c)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:

Nonprofit

Organizations that operate without the primary goal of earning profits for their owners or shareholders but rather to serve the public good or a specific societal need.

Success

The accomplishment of an aim or purpose, often marked by achieving specified goals or attaining prosperity.

Revenue

The income generated from normal business operations or other activities, calculated before any expenses are subtracted.

Governments

Governments are formal structures and institutions that hold the authority to establish rules, regulations, and policies for a geographic area and its population.