The Following Transactions Apply to the Grant Corporation for 2013

question 56

Essay

The following transactions apply to the Grant Corporation for 2013, its first year in business.
1) Issued stock to investors, $24,000.
2) The company borrowed $21,000 cash from the bank.
3) Services were provided to customers and $24,000 cash was received.
4) The company loaned $5,000 to another company.
5) The company acquired land for $22,000.
6) The company paid $12,000 rent for the building where it does its business.
7) The company paid $1,600 for supplies that were used during the period.
8) The company sold the land acquired in item 5 for $22,000.
9) A dividend of $5,000 was made to the owners.
10) Repaid $10,000 of the loan described in item 2.
Required:
Prepare a statement of cash flows for 2013.

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Definitions:

Drawings

The act of the business owner taking out money or assets from the enterprise for private use.

Balance Sheet

A record that consolidates information about a company's assets, financial obligations, and the equity portion attributable to shareholders at a distinct time.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in net profit or loss.

Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.