Preparation of statement of cash flow statement using

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Reference no: EM13356198

Preparation of statement of cash flow statement using direct method

San Garza Properties has been in business for many years.  On December 31, 2006, the firm's cash balance was $9,121.  During January of 2007, the 14 events on the following page were recorded in the company's accounting system.

 

 

Assets

=

Liabilities

+

Owner's Equity

Date

Accounts

Cash

Other Assets

 

 

 

Contributed Capital

Retained Earnings

1

Cash

18,000

 

 

18,000

 

 

 

 

Bank Loan Payable

 

 

 

 

 

 

 

2

Rent Expense

 

 

 

 

 

 

 

 

Cash

(3000)

 

 

 

 

 

(3000)

3

Office Furniture


5,500

 

 

 

 

 

 

Cash

(5,500)

 

 

 

 

 

 

4

Merchandise

 

9,000

 


 

 

 

 

Accounts Payable

 

 

 

 9,000

 

 

 

5

Cash

10,000

 

 


 

 

 

 

Common stock

 

 

 

10,000

 

 

 

6

Adverting Receivable

 

 

 

 

 

 

 (2,200)

 

Cash

(2,200)

 

 

 

 

 


7

Accounts Receivable

 

18,000

 

 

 

 


 

Sales Revenue

 

 

 

 

 

 

 18,000

8

Merchandise

 

(7,500)

 

 

 

 


 

Costs of Goods Sold

 

 

 

 

 

 

 (7,500)

9

Cash

8,100


 

 

 

 

 

 

Accounts Receivable

 

(8,100)

 

 

 

 

 

10

Accounts Payable


 

 

(7,000)

 

 

 

 

Cash

(7,000)

 

 

 

 

 

 

11

Computer Equipment


4,800

 

 

 

 

 

 

Cash

 (4,800)

 

 

 

 

 

 

12

Wages Expense

 

 

 


 

 

(1,400)

 

Wages Payable

 

 

 

 1,400

 

 

 

13

Dividends

 

 

 

 

 

 

(2,000)

 

Cash

(2,000)

 

 

 

 

 


14

Bank Loan Payable

 

 

 

(5,000)

 

 

 

 

Interest Expense

 

 

 


 

 


 

Cash

(5,135)

 

 

 

 

 

(135)

 

Ending Amounts

$6,465

$21,700

 

=

$16,400

$10,000

$1,765

Required:
Prepare a statement of cash flows for the month of January 2007.  Use good form and the direct format.

Reference no: EM13356198

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