1. The company started when it acquired $17,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $13,700 cash. 3. Earned $23,600 in cash revenue. 4. Paid $10,400 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $3,000. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1.
1. The company started when it acquired $17,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $13,700 cash. 3. Earned $23,600 in cash revenue. 4. Paid $10,400 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $3,000. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
100%
I need help with this table chart, thank you!
Transcribed Image Text:a. Record the above transactions in a horizontal statements model.
b. What amount of depreciation expense would CIC report on the Year 1 income statement?
c. What amount of accumulated depreciation would CIC report on the December 31, Year 2, balance sheet?
d. Would the cash flow from operating activities be affected by depreciation in Year 1?
Complete this question by entering your answers in the tabs below.
Req A
Req B to D
Record the above transactions in a horizontal statements mødel. (In the Cash Flow column, indicate whether the item is an operating activity (OA),
(IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to ac
cash outflows with a minus sign. Not all cells will require entry.)
COWBOY ICE CREAM COMPANY
Horizontal Statements Model
Balance Sheet
Income Statement
Statement of Cash
Flows
Assets
Equity
%3D
Event
Retained
Revenue
Expense
Net Income
Common
Stock
BV
Cash
Equipment
Earnings
1.
2.
%3D
3.
%3D
4.
5.
0 =
Bal.
Reg B to D
Transcribed Image Text:abled: Ignore - Cannot Delete
Saved
Help
Save
1. The company started when it acquired $17,000 cash by issuing common stock.
2. Purchased a new cooktop that cost $13,700 cash.
3. Earned $23,600 in cash revenue.
4. Paid $10,400 cash for salaries expense.
5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of
four years and an estimated salvage value of $3,000. Use straight-line depreciation. The adjusting entry was made as of
December 31, Year 1.
Required
a. Record the above transactions in a horizontal statements model.
b. What amount of depreciation expense would CIC report on the Year 1 income statement?
c. What amount of accumulated depreciation would CIC report on the December 31, Year 2, balance sheet?
d. Would the cash flow from operating activities be affected by depreciation in Year 1?
Complete this question by entering your answers in the tabs below.
Reg A
Reg B to D
Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an inve
(IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to account
cash outflows with a minus sign. Not all cells will require entry.)
COWBOY ICE CREAM COMPANY
Horizontal Statements Model
Balance Sheet
Income Statement
Equity
Statement of Cash
Flows
Event
Assets
Retained
Revenue
Expense
= Net Income
Common
Stock
BV
Cash
Equipment
Earnings
1.
2.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education