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lippitt painting service company was organized on january 20 2011 by three individua 4238461

Lippitt Painting Service Company was organized on January 20, 2011, by three individuals, each receiving 5,000 shares of stock from the new company. The following is a schedule of the cumulative account balances immediately after each of the first 10 transactions ending on January 31, 2011.Required:1. Analyze the changes in this schedule for each transaction; then explain the transaction. Transactions (a) and (b) are examples:a. Cash increased $75,000, and Contributed Capital (stockholders’ equity) increased $75,000. Therefore, transaction (a) was an issuance of the capital stock of the corporation for $75,000 cash.b. Cash decreased $5,000, office fixtures (an asset) increased $20,000, and note payable (a liability) increased $15,000. Therefore, transaction (b) was a purchase of office fixtures that cost $20,000. Payment was made as follows: cash, $5,000; note payable, $15,000.2. Based only on the preceding schedule after transaction (j), prepare an income statement, a statement of retained earnings, and a balance sheet.3. For each of the transactions, indicate the type of effect on cash flows (O for operating, I for investing, or F for financing) and the direction (+ for increase and – for decrease) and amount of the effect. If there is no effect, write none. The first transaction is provided as an example.
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Lippitt Painting Service Company was organized on January 20

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