Reference no: EM132960642

Year 1:

1. Issues 10 shares of stock at $9 per share in cash.

2. Takes a loan for $30 in cash.

3. Buys a prepaid travel card for $12 in cash. The travel card is not used at the time of purchase. It is used later.

4. Receives $11 cash in advance from customer A for work it will do later.

5. Completes a consulting assignment for customer B and bills the customer for $33. Customer B will pay later.

6. Uses up $9 of the travel card for travel. The remaining balance will be used next year.

7. Completes a consulting assignment for $11 for customer A from whom it had received cash in advance.

8. Owes $17 to its employees for the work on the two consulting assignments. Employees are paid later.

9. Receives $15 in cash from customer B for whom it had completed a consulting assignment earlier. The remaining balance will be collected next year.

10. Pays $8 to its employees for their work earlier. The remaining balance will be paid next year.

11. Incurs an interest expense of $3 and pays it in cash.

12. Repays $10 towards the loan principal.

13. Declares and pays $6 [60 cents per share] in cash as dividends.

14. Buys back 2 shares at $9 per share in cash.

Problem 1: What is the effects on all Financial Statements?