The following transactions apply to Baird Corporation.
1)Issued common stock for $40,000 cash.
2)Provided services to customers for $32,000 on account.
3)Borrowed $30,000 on September 1 at 8% interest with a one year term.
4)Purchased land for $32,000 cash.
5)Paid $22,000 for operating expenses.
6)Collected $28,000 cash from customers.
7)Recorded interest on the note payable at year end.
8)Paid $4,000 dividends to stockholders.
Required:
a)Identify the effect on the statement of cash flows for each of the above transactions.Include the amount and the type of cash flow activity.Cash payments should be entered with a minus sign.
b)Classify the above accounting events into one of four types of transactions (asset source,asset use,asset exchange,claims exchange).

Question

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The Answer of The following transactions apply to Baird Corporation.
1)Issued common stock for $40,000 cash.
2)Provided services to customers for $32,000 on account.
3)Borrowed $30,000 on September 1 at 8% interest with a one year term.
4)Purchased land for $32,000 cash.
5)Paid $22,000 for operating expenses.
6)Collected $28,000 cash from customers.
7)Recorded interest on the note payable at year end.
8)Paid $4,000 dividends to stockholders.
Required:
a)Identify the effect on the statement of cash flows for each of the above transactions.Include the amount and the type of cash flow activity.Cash payments should be entered with a minus sign.
b)Classify the above accounting events into one of four types of transactions (asset source,asset use,asset exchange,claims exchange).

The Following Transactions Apply to Baird Corporation