Preparing a Statement of Cash Flows San Garza Properties has been in business for many years. On December 31, 2003, the firm’s cash balance was $9,121. During January of 2004, the 14 events below were recorded in the company’s accounting system.
|
ASSETS |
LIABILITIES |
OWNERS’ EQUITY |
|||
|
Date |
Accounts |
Cash |
Other |
Contributed |
Retained |
|
1 |
Cash |
18,000 |
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|
Bank Loan Payable |
18,000 |
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|
2 |
Rent Expense |
3,000 |
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|
Cash |
3,000 |
||||
|
3 |
Office Furniture |
5,500 |
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|
Cash |
5,000 |
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|
4 |
Merchandise |
9,000 |
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|
Accounts Payable |
9,000 |
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|
5 |
Cash |
10,000 |
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|
Common Stock |
10,000 |
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|
6 |
Advertising Expense |
2,200 |
|||
|
Cash |
2,200 |
||||
|
7 |
Accounts Receivable |
18,000 |
18,000 |
||
|
Sales Revenue |
|||||
|
8 |
Merchandise |
7,500 |
|||
|
Cost of Goods Sold |
7,500 |
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|
9 |
Cash |
8,100 |
|||
|
Accounts Receivable |
8,100 |
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|
10 |
Accounts Payable |
7,000 |
|||
|
Cash |
7000 |
||||
|
11 |
Computer Equipment |
4,800 |
|||
|
Cash |
4800 |
||||
|
12 |
Wages Expense |
1,400 |
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|
Wages Payable |
1,400 |
||||
|
13 |
Dividends |
2,000 |
|||
|
Cash |
2000 |
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|
14 |
Bank Loan Payable |
5,000 |
|||
|
Interest Expense |
135 |
||||
|
Cash |
5135 |
Required Prepare a statement of cash flows for the month of January 2004. Use good form and the direct format.