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, $\$ 600$.

Question

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, $\$ 600$.

Quizplus · Accepted Answer

The Answer of 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, $\$ 600$.

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

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