Cascade Corporation began business operations and experienced the following transactions during Year 1:Issued common stock for $20,000 cashProvided services to customers for $80,000 on accountIncurred $36,000 of operating expenses on accountCollected $46,000 cash from customersPaid $30,000 on accounts payableRequired:Record the above transactions on a horizontal statements model to reflect their effect on Cascade's financial statements. Classify each of the following transactions for the purpose of the statement of cash flow as operating activities (OA), investing activities (IA), or financing activities (FA). If a transaction is not reported on the statement of cash flows, leave that cell blank.

Question

Quizplus · Accepted Answer

The Answer of Cascade Corporation began business operations and experienced the following transactions during Year 1:Issued common stock for $20,000 cashProvided services to customers for $80,000 on accountIncurred $36,000 of operating expenses on accountCollected $46,000 cash from customersPaid $30,000 on accounts payableRequired:Record the above transactions on a horizontal statements model to reflect their effect on Cascade's financial statements. Classify each of the following transactions for the purpose of the statement of cash flow as operating activities (OA), investing activities (IA), or financing activities (FA). If a transaction is not reported on the statement of cash flows, leave that cell blank.

Cascade Corporation Began Business Operations and Experienced the Following Transactions