Find statement of cash flows equal change in cash balance

Reference no: EM131520185

Question: Rocky owns and operates Balboa's Gym located in Philadelphia. The following transactions occur for the month of October:

October 2 Receive membership dues for the month of October totaling $7,500.

October 5 Issue common stock in exchange for cash, $10,000.

October 9 Purchase additional boxing equipment for $8,600, paying one-half of the amount in cash and the other one-half due by the end of the year.

October 12 Pay $1,000 for advertising regarding a special membership rate available during the month of October.

October 19 Pay dividends to stockholders, $3,400.

October 22 Pay liability insurance to cover accidents to members for the next six months, starting November 1, $6,000.

October 25 Receive cash in advance for November memberships, $4,600.

October 30 Receive, but do not pay, utilities bill for the month, $4,200.

October 31 Pay employees' salaries for the month, $6,300.

Required: 1. Record each transaction.

2. Identify the transactions involving cash.

3. Assuming the balance of cash at the beginning of October is $15,600, post each cash transaction to the Cash T-account and compute the ending cash balance.

4. Prepare a statement of cash flows for the month of October, properly classifying each of the cash transactions into operating, investing, and financing activities.

5. Verify that the net cash flows reported in the statement of cash flows equal the change in the cash balance for the month.

Reference no: EM131520185

Questions Cloud

What recommendations would you make to placate both parties : You have been called in to mediate this situation. How would you evaluate this situation? What recommendations would you make to placate both parties?

Perform a swot analysis for your company : Perform a SWOT analysis for your company remembering that the strengths and weaknesses are internal and the opportunities.

Determining the australian securities exchange : Bondi Beachwear Ltd (BBL) shares are listed on the Australian Securities Exchange.

How does narrative language create the illusion of reality : How does the narrative: language, description, dialogue, and repetition create the illusion of reality? Be sure to share a quote from the story to support your

Find statement of cash flows equal change in cash balance : Rocky owns and operates Balboa's Gym located in Philadelphia. The following transactions occur for the month of October.

Main concerns about a online digital farm : What do you think will be some main concerns about a online digital farm?

What does the constitution reveal about the religious views : With an emphasis upon religious fervor and temperament. What does the Constitution reveal about the religious views of America's Founding Fathers? In what way?

Should high-end designer apparel brands like gucci : Should high-end designer apparel brands like Gucci, Chanel, or Prada sell their goods direct to consumers through the Internet? Why or why not

Loan period and no compensating balance requirement : An 18% rate of interest with interest paid at the end of the loan period and no compensating balance requirement

User Account

All Pages