143. The following transactions apply to the Pryor Corporation for 2011, its first year in business.
1) Issued stock to investors, $12,000.
2) The company borrowed $10,500 cash from the bank.
3) Services were provided to customers and $12,000 cash was received.
4) The company loaned $2,500 to another company.
5) The company acquired land for $11,000.
6) The company paid $6,000 rent for the building where it does its business.
7) The company paid $800 for supplies that were used during the period.
8) The company sold the land acquired in item 5 for $11,000.
9) A dividend of $2,500 was made to the owners.
10) Repaid $5,000 of the loan described in item 2.
Required: Prepare a statement of cash flows for 2011.
144. Ruiz Company began operations on January 1, 2011, and on that date issued stock for $30,000 cash. In addition, Ruiz borrowed $25,000 cash from the local bank. The company provided services to its customers during 2005 and received $17,500. It purchased land for $35,000. During the year, it paid $5,000 cash for salaries and $4,500 cash for supplies that were used up in its operations. Stockholders were paid cash dividends of $4,000 during the year.
Required: 1) List the transactions from the information above (for example, issued common stock for $30,000) and indicate in which section of the statement of cash flows each transaction would be reported.
2) What would the amount be for net cash flows from operating activities?
3) What would be the amount of the total assets for the Ruiz Company at the end of 2011?
4) What would the end-of-year balance be for the retained earnings account?
5) What would the end-of-year balance be for the cash account?
145. The Yowell Company began operations on January 1, 2011 and on that date issued $15,000 of common stock for cash. In addition, the company borrowed $10,000 from the bank. It provided services to its customers during 2011 and received $18,000 cash. During the year, it paid $20,000 cash for land, $5,000 for salaries, and $3,000 in cash dividends to the owners.
Required: 1) Write an accounting equation and record the effects of each transaction under the appropriate heading. (Use specific accounting titles below the major headlines)
2) Prepare an income statement and a balance sheet for the 2011 accounting period.