Question

All-Star Automotive Company experienced the following accounting events during Year 1: Performed services for $14,300 cash. Purchased land for $7,300 cash. Hired an accountant to keep the books. Received $33,000 cash from the issue of common stock. Borrowed $8,600 cash from State Bank. Paid $4,300 cash for salary expense. Sold land for $8,600 cash. Paid $3,300 cash on the loan from State Bank. Paid $4,500 cash for utilities expense. Paid a cash dividend of $1,300 to the stockholders.

Answer 1

Missing word "Indicate how each of these events would be classified on the statement of cash-flow, OA, IA, FA or NA"

EVENTS CLASSIFICATION

Performed services for $14,300 cash. Operating activities

Purchased land for $7,300 cash. Investing activities

Hired an accountant to keep the books. Not applicable

Received $33,000 cash from the issue Financing activities

of common stock.

Borrowed $8,600 cash from State Bank. Financing activities

Paid $4,300 cash for salary expense. Operating activities

Sold land for $8,600 cash. Investing activities

Paid $3,300 cash on the loan from Financing activities

State Bank.

Paid $4,500 cash for utilities expense. Operating activities

Paid a cash dividend of $1,300 to Financing activities

the stockholders.