During the Year,MNO Company Issued Common Stock to Stockholders for $5,000;

question 83

Essay

During the year,MNO Company issued common stock to stockholders for $5,000; purchased land for $1,000 cash; provided services to customers for $4,000; paid cash operating expenses of $3,100; and paid cash dividends of $500 to the company's owners.Enter each of these events into the horizontal financial statements model,below.Indicate dollar amounts of increases and decreases.For cash flows,show whether they are operating activities (OA),investing activities (IA),or financing activities (FA).

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Definitions:

Employee Benefits

Non-wage compensation provided to employees in addition to their normal wages or salaries, including health insurance, pensions, and vacation.

Unemployment Taxes

Taxes imposed on employers at both federal and state levels to fund unemployment insurance benefits for workers who have lost their jobs.

Working Capital

The difference between a company's current assets and current liabilities, indicating the funds available for day-to-day operations.

Note Payable

A written promise to pay a specific sum of money to a creditor at a future date under specified terms.