Fun in the Sun Incorporated operates a beach chair rental service in south Florida. The company experienced the following events in its first year of operations:
Issued $ of common stock for cash.
Provided $ of rental services on account.
Collected $ cash from accounts receivable.
Adjusted the accounting records to reflect uncollectible accounts expense for the year. The company estimates that percent of the ending accounts receivable balance will be uncollectible.
Required:
Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities OA investing activities IA or financing activities FA The first transaction is shown as an example.
Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.
