The Following Transactions Apply to Wilson Fitness Center for 2016

question 38

Essay

The following transactions apply to Wilson Fitness Center for 2016.
1)Started the business by issuing $48,000 of common stock for cash.
2)Provided services to clients and received $65,500 cash.
3)Borrowed $10,500 from the bank.
4)Paid $8,500 for rent of equipment.
5)Purchased land for $15,000.
5)Paid $46,600 of salary expense.
6)Cash dividends of $4,000 were paid to the stockholders.
Required:
a)What are the total assets of the business at the end of 2016?
b)Prepare a Statement of Cash Flows for 2016.Precede the amount with a minus sign if the transaction reduces that section of the statement.

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Definitions:

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle.

Accounts Payable

Liabilities or amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Accrued Liabilities

Expenses that have been incurred but not yet paid or recorded through a standard accounting transaction, representing future cash outflows.

Decrease Cash

Decrease cash refers to a reduction in the amount of money and cash equivalents available in a company, which can result from paying expenses, purchasing assets, or distributing dividends.