identifying activity categories of transactions mdash direct method 552735
Identifying activity categories of transactions—direct method
Selected accounts of Printing Networks, Inc., show the following:
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|
Accounts receivable |
|||
|
Beginning balance |
9,100 |
||
|
Service revenue |
40,000 |
Cash collections |
38,000 |
|
Ending balance |
11,100 |
||
|
Land |
|
|
Beginning balance |
87,000 |
|
Acquisition |
14,000 |
|
Ending balance |
101,000 |
|
Long-term notes payable |
|||
|
Beginning balance |
274,000 |
||
|
Payments |
73,000 |
Issuance for cash |
84,000 |
|
Ending balance |
285,000 |
||
Requirement
1. For each account, identify the item or items that should appear on a statement of cash flows prepared by the direct method. Also state each item’s amount and where to report the item.
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