Below are listed several transactions of Patricia Company during 2013.
1. Provided services to customers for cash, $35,000
2. Purchased land by paying cash, $16,000
3. Paid rent for 6 months, $12,000
4. Acquired cash of $25,000 by issuing common stock
5. Purchased office supplies on account, $2,700
6. Receive payment of $6,000 from a customer for services that will be provided over the next six months
Required:
a) Prepare journal entries for each of the preceding transactions, using the general journal below. b) Show how each transaction affects the financial statements model. Include dollar amounts of increases and decreases; indicate NA for not affected. In the Cash Flow column, use the letters OA for operating activities, IA for investing activities, and FA for financing activities.

Question

Below are listed several transactions of Patricia Company during 2013.
1. Provided services to customers for cash, $35,000
2. Purchased land by paying cash, $16,000
3. Paid rent for 6 months, $12,000
4. Acquired cash of $25,000 by issuing common stock
5. Purchased office supplies on account, $2,700
6. Receive payment of $6,000 from a customer for services that will be provided over the next six months
Required:
a) Prepare journal entries for each of the preceding transactions, using the general journal below.  b) Show how each transaction affects the financial statements model. Include dollar amounts of increases and decreases; indicate NA for not affected. In the Cash Flow column, use the letters OA for operating activities, IA for investing activities, and FA for financing activities.

Quizplus · Accepted Answer

The Answer of Below are listed several transactions of Patricia Company during 2013.
1. Provided services to customers for cash, $35,000
2. Purchased land by paying cash, $16,000
3. Paid rent for 6 months, $12,000
4. Acquired cash of $25,000 by issuing common stock
5. Purchased office supplies on account, $2,700
6. Receive payment of $6,000 from a customer for services that will be provided over the next six months
Required:
a) Prepare journal entries for each of the preceding transactions, using the general journal below.  b) Show how each transaction affects the financial statements model. Include dollar amounts of increases and decreases; indicate NA for not affected. In the Cash Flow column, use the letters OA for operating activities, IA for investing activities, and FA for financing activities.

Below Are Listed Several Transactions of Patricia Company During 2013