The following transactions apply to Einstein Corporation.1) Issued common stock for $50,000 cash.2) Provided services to customers for $28,000 on account.3) Purchased land for $16,000 cash.4) Purchased $1,500 of supplies on account.5) Paid $12,000 for operating expenses.6) Paid $550 on accounts payable.7) Collected $25,000 cash from customers.8) Accrued $600 of salary expense at year end.9) Paid $2,000 dividends to stockholders.Required:a) Identify the effect on the statement of cash flows for each of the above transactions.b) Classify the above accounting events into one of four types of transactions (asset source, asset use, asset exchange, claims exchange).
What will be an ideal response?
| ? | a) | b) | |
| Event | Cash Flow | Transaction | |
| 1) | 50,000 | FA | Asset source |
| 2) | NA | ? | Asset source |
| 3) | (16,000) | IA | Asset exchange |
| 4) | NA | ? | Asset source |
| 5) | (12,000) | OA | Asset use |
| 6) | (550) | OA | Asset use |
| 7) | 25,000 | OA | Asset source |
| 8) | NA | ? | Claims exchange |
| 9) | (2,000) | FA | Asset use |
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