Paid 1500 to the bank 900 to reduce the principal on an


1. Issued 600 shares of stock for $25 each.

2. Sold services for $4,000.

3. Paid wages of $1,600.

4. Purchased land as a long-term investment for $9,000 cash.

5. Paid a $2,000 dividend.

6. Sold land with a book value of $3,000 for $3,500 cash.

7. Paid $1,500 to the bank: $900 to reduce the principal on an outstanding loan and $600 as an interest payment.

8. Paid miscellaneous expenses of $1,800.

a. Prepare journal entries for each transaction.

b. Prepare a cash T-account, and compute Small's cash balance as of the end of January.
Assume a beginning balance of $5,000.

c. Prepare a statement of cash flows for the month of January.

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Finance Basics: Paid 1500 to the bank 900 to reduce the principal on an
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