Reference no: EM13914659
The following events apply to Kate Enterprises:
1. Acquired $50,000 cash from the issue of common stock.
2. Paid salaries to employees, $3,500 cash.
3. Collected $16,200 cash for services to be performed in the future.
4. Paid cash for utilities expense, $804.
5. Recognized $45,000 of service revenue on account.
6. Paid a $2,500 cash dividend to the stockholders.
7. Purchased $3,200 of supplies on account.
8. Received $12,500 cash for services rendered.
9. Paid cash to rent office space for the next
12 months, $12,000.
10. Paid cash of $17,500 for other operating expenses.
11. Paid on account payable, $1,752.
12. Recognized $3,000 of rent expense. Cash had been paid in a prior transaction (see Event 9).
13. Recognized $5,000 of revenue for services performed. Cash had been previously collected (see Event 3).
14. Recognized $5,200 of accrued salaries expense.
15. Recognized $1,300 of accrued interest revenue.
Required:
Identify each event as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also identify the account that is to be debited and the account that is to be credited when the transaction is recorded.
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The first event is recorded as an example.
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