Transactions and Financial Statements Jo Birde established a

Transactions and Financial Statements Jo Birde established an insurance agency on March 1, 20YS, and completed the following transactions during March: a. Opened a business bank account in the name of Birde Insurance Inc, with a deposit of $49,000 in exchange for capital stock b. Borrowed $23,000 by issuing a note payable. c. Received cash from fees earned, $29,000 d. Pald rent on office and equipment for the month, $3,000 e. Paid automobile expense for the month,$1,600, and miscellaneous expense, $700 f. Paid office salaries, $4,200 9. Paid interest on the note payable, $110 h. Purchased land as a future building site, $58,000 i. Paid dividends, $3,800 Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework. If an amount box does not require an entry, leave it blank, Enter account decreases and net cash outlows as negative amounts Balance Sheet Assets Liabilities Stockholders\' Equity Cash . Notes Payable-:)+ Capital Stock : +] Retained Earning

Solution

Assets Liabilities Stockholders equity Statement of cash Flow Cash + Land Note payable Capital stock + Retained earnings a +49000 +49000 Financing activity b +23000 +23000 Financing activity c +29000 +29000 operating activity d -3000 -3000 operating activity e -2300 -2300 operating activity f -4200 -4200 operating activity g -110 -110 operating activity h -58000 +58000 Investing activity i -3800 -3800 Financing activity Total 29590 + 58000 23000 49000 + 15590