Analyzing transactions. International News Herald Inc. entered into the following
transactions during 2010: (LO 3)
1. International News Herald Inc. started as a corporation with a $”7,250 cash contribution from the owners in exchange for common stock.
2. Newspaper sales, all on account, amounted to $8,900.
3. Cash collections of accounts receivable amounted to $4,750.
4. On November 1, 2010, the company paid $3,000 in advance for an insurance policy that does not go into effect until 201 1.
5. The company paid dividends of $400.
Put each of the transactions in an accounting equation worksheet. Then, answer the following questions:
a. What is the amount of net cash from financing activities for the year ended December 3I,2010?
b. What amount of total assets would appear on the December3 1,2010, balance sheet?
c. What amount of net income would appear on the income statement for the year ended December 3I, 20lO?
d. What is the amount of retained earnings as of December 31,2010?