I only need the answer to number 5, thanks! Obj 1, 2, 3 V3. Net incom 18,000 P2-

Question

I only need the answer to number 5, thanks!

Obj 1, 2, 3 V3. Net incom 18,000 P2-1 Transactions and financial statements Van Jordan established an insurance agency on March 1, 20Y5, and completed the following transactions during March a. Opened a business bank account in the name of Jordan Insurance Inc., with a deposit of $50,000 in exchange for capital stock. b. Borowed $25,000 by issuing a note payable c. Received cash from fees earned, $28,000 d. Paid rent on office and equipment for the month, $3,000 e. Paid automobile expense for the month, $1,800, and miscellaneous expense, $900 f. Paid office salaries, $4,200 g. Paid interest on the note payable, $100 h. Purchased land as a future building site, paying cash of $55,000 i. Paid dividends, $4,000 Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework 2. Briefly explain why the stockholders investments and revenues increased stockholders equity, while dividends and expenses decreased stockholders' equity 3. Prepare an income statement and retained earnings statement for March 4. Prepare a balance sheet as of March 31, 20Y5 5. Prepare a statement of cash flows for Marclh

Explanation / Answer

5) statement of cash flow :

cash flow from operating activity cash receipt from operating activity 28000 cash payment for operating activity     [3000+1800+900+4200+100] 10000 net cash from operating activity 18000 cash used for investing activity Purchase land - 55000 cash from financing ACTIVITY dividend paid - 4000 issue of common stock 50000 issue of note payable 25000 net cash flow from financing activity 71000 net increase in cash during march 34000 cash as march 1 0 cash as of march 31 34000

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