A Company Had the Following Transactions During the Year

question 27

Essay

A company had the following transactions during the year:
1.Paid rent for the next two years,$8,000.
2.Purchased office supplies on account,$2,400.
3.Purchased equipment,paying $12,000 cash and issuing a note payable for $4,000.
4.Borrowed from the bank,$6,000.
5.Paid employee salaries,$7,200.
6.Paid $2,000 on account related to transaction 2 above.
7.Paid dividends to stockholders,$2,800.
8.Sold land for $10,000 that was purchased in a prior year for $7,500.
9.Collected cash from customers for services provided,$25,700.
Calculate cash flows from operating activities,investing activities,and financing activities.

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Definitions:

Genuine Deliberations

Authentic and sincere discussions aimed at reaching a thoughtful decision.

Understanding

The ability to grasp the meaning, significance, or nature of something, including situations, information, or concepts.

Disability

A condition that limits a person's movements, senses, or activities, and may impact their full participation in society.

Morally

Pertaining to principles of right and wrong in behavior; ethically.