Seascape Marina,Inc $\$ 25,000$ Cash in the Business $\$ 1,200$
C Purchased Office Equipment

question 8

Essay

Seascape Marina,Inc.had the following transactions during May of the current year.
Required:
Classify each transaction as an operating,investing,or financing activity and prepare a statement of cash flows.
a. Invested $\$ 25,000$ cash in the business.
b. Paid office rent, $\$ 1,200$ .
c. Purchased office equipment. Paid $\$ 4,500$ in cash and agreed to pay the balance in six monthly installments.
d. Paid cash for advertising in Seaview magazine, $\$ 900$ .
e. Received cash for six research assignments, $\$ 3,600$ .
f. Paid telephone bill, $\$ 240$ .
g. Made payment on loan from transaction (c), $\$ 800$ .
h. Withdrew cash for personal use, $\$ 1,800$ .
i. Paid wages to office assistant, $\$ 600$ .

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Definitions:

Implicitly

In a way that is not directly expressed but is understood or implied.

Explicitly

Stated clearly and in detail, leaving no room for confusion or ambiguity.

Venture Capitalists

Investors who provide capital to start-ups and early-stage companies with potential for high growth, typically in exchange for equity.

Startup

An entrepreneurial venture typically in the early stages of operations, often innovation-driven and aiming to meet a marketplace need by developing a viable business model around a product, service, process, or platform.