A company had the following transactions during the year: 1. Paid rent for the next two years, $8,100. 2. Purchased office supplies on account, $2,900. 3. Purchased equipment, paying $15,000 cash and issuing a note payable for $7,000. 4. Borrowed from the bank, $6,600. 5. Paid employee salaries, $7,800. 6. Paid $1,300 on account related to transaction 2 above. 7. Paid dividends to stockholders, $3,200. 8. Sold land for $10,400 that was purchased in a prior year for $8,000. 9. Collected cash from customers for services provided, $25,100. Calculate cash flows from operating activities, investing activities, and financing activities. (Cash outflows should be indicated with a minus sign.) Operating activities Investing activities Financing activities

A company had the following transactions during the year: 1. Paid rent for the next two years, $8,100. 2. Purchased office supplies on account, $2,900. 3. Purchased equipment, paying $15,000 cash and issuing a note payable for $7,000. 4. Borrowed from the bank, $6,600. 5. Paid employee salaries, $7,800. 6. Paid $1,300 on account related to transaction 2 above. 7. Paid dividends to stockholders, $3,200. 8. Sold land for $10,400 that was purchased in a prior year for $8,000. 9. Collected cash from customers for services provided, $25,100. Calculate cash flows from operating activities, investing activities, and financing activities. (Cash outflows should be indicated with a minus sign.) Operating activities Investing activities Financing activities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $3.990 from a local bank on a note due in six months. b. Received $4,680 cash from investors and issued common stock to them. C. Purchased $1,100 in equipment, paying $250 cash and promising the rest on a note due in one year. d. Paid $350 cash for supplies. e. Bought and received $750 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero.
Malco Enterprises issued $12,00 of common stock when the company was started. In addition, Malco borrowed $38,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $74,700 of revenue on account in Year 1 and $87,200 of revenue on account in Year 2. Cash collections of accounts receivable were $63,300 in Year 1 and $73,500 in Year 2. Malco paid $40,800 of other operating expenses in Year 1 and $47,000 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date. Based on this information given above, record the events in the accounting equation then answer the following questions. Enter any decreases to account balances with a minus sign. a. what amount of interest expense would Malco report on the Year 1 income statement? b. what amount of net cash flow from operating activites would Malco report on the Year 1 statement of cash flows? c. what amount of…
The following is a summary of the transactions for the year: a. Sales of services, $100,000, of which $30,000 was on credit. b. Collected on accounts receivable, $27,300. c. Issued shares of common stock in exchange for $10,000 in cash. d. Paid salaries, $50,000 (of which $9,000 was for salaries payable). e. Paid miscellaneous expenses, $24,000. f. Purchased equipment for $15,000 in cash. g. Paid $2,500 in cash dividends to shareholders. Required: 1. Set up the necessary T-accounts and enter the beginning balances from the trial balance. 2. Prepare a general journal entry for each of the summary transactions listed above. 3. Post the journal entries to the accounts. 4. Prepare an unadjusted trial balance. 5. Prepare and post adjusting journal entries. Accrued salaries at year-end amounted to $1,000. Depreciation for the year on the equipment is $2,000. 6. Prepare an adjusted trial balance. 7. Prepare an income statement for 2016 and a balance sheet as of December 31, 2016. 8. Prepare…
For the purpose of borrowing $100,000 (10-year loan with 12% interest annually), Shannon Merchandising Company has submitted the following audited Balance Sheet and Income Statement to Bank. Statement Of Financial Position (Balance Sheet) As of Dec. 31st, 2021 Cash $40,000 Accounts receivable 170,000 Merchandise Inventory 220,000 Land 50000 Building and equipment (net) 470,000 Total assets $950,000 Accounts payable $140,000 Wages payable 100,000 Notes Payable (5-year note) 300,000 Total liabilities 540,000 Common stock, $10 par 310,000 Retained earnings 110,000 Total stockholders' equity 410000 Total liabilities and stockholders' equities $950,000 Income Statement For the Year Ending December 31, 2021 Revenues: Sales $2,880,000 Expenses: Cost of goods sold 1,512,000 Operating expenses 1,128,000 Interest expense 40,000 Income tax expense 80,000 Total Expenses 2,760,000 Net income $120,000 Assume you are the…
es Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. ● $7,000 cash deposit in checking account. . $28,000 bond investment due in 20 years. . $7,000 U.S. Treasury bill due in 1 month. . $400, 3-year loan to an employee. • $1,800 of currency and coins. . $700 of accounts receivable. Checking account Bond investment U.S. Treasury bill Loan to an employee. Currency and coins Accounts receivable $ Amount Total Cash and cash equivalents 7,000 28,000 7,000 400 1,800 700 Included in Cash and Cash Equivalents? Cash and Cash Equivalents Amount $ $ 0 0 0 0 0 0 0
Journalize the following: 1. On the books & records of Company A: On May 2nd, Company A received $100 of interest income from the bank earned in April. If the books are on an accrual basis, record the entry in April and in May when cash was received April May 2. On the books & records of Company A: In January, Company A purchased Investment in XYZ for $100. Payment was made in cash. In March, Company A sold Investment in XYZ for $150. Payment was received in cash. 3. On the books & records of Company A: On April 1st, Company A paid $1,200 for insurance expense that covers the year 4/1/17-3/31/18. Record 4/1/17 entry for payment of $1,200 Record 4/30/17 journal entry 4. There are 2 parallel funds, Fund A and Fund B. Together, the funds will make an investment of $100k, with a 65/35 split. The investment will be paid in cash, however, Fund B does not currently have any cash so Fund…
The following transactions occurred during a recent year: a. Paid wages of $1,000 for the current period (example). b. Borrowed $5,000 cash from local bank using a short-term note. c. Purchased $2,000 of equipment on credit. d. Earned $400 of sales revenue; collected cash. e. Received $800 of utilities services, on credit. f. Earned $1,700 of service revenue, on credit. g. Paid $300 cash on account to a supplier. h. Incurred $70 of travel expenses; paid cash. i. Earned $400 of service revenue; collected half in cash, with balance on credit. j. Collected $100 cash from customers on account. k. Incurred $300 of advertising costs; paid half in cash, with balance on credit. Required: 1. For each of the transactions, complete the following table, indicating the account, amount, and direc and for decrease) of each transaction under the accrual basis. Include revenues and expenses as equity, as shown for the first transaction, which is provided as an example. 2. Determine the company's…
answer in text form please (without image), Note: .Every entry should have narration please
New On April 1, Year 1, Exotic Motor Cars Incorporated declared a $136,000 cash dividend to be paid on April 30 to shareholders of record on April 15. Required: Record the events occurring on April 1, April 15, and April 30 in a horizontal statements model. In the Statement of Cash Flows column. indicate whether the item is an operating activity (OA), investing activity (IA). or financing activity (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Date April 1 April 15 April 30 Assets 0✓ = 0 = |= Balance Sheet Liabilities 136,000 + 0✔ + (136,000)✓ + Common Stock + 0 + 0+ 0 + Retained Earnings 00 00 Answer is not complete. Revenue 03- 00 03 Income Statement Expenses 0 0 0 = = = Net Income 00 00 0 Statement of Cash Flows 0- 00 (136,000) FA ✔
The following transactions apply to Pecan Co. for Year 1, its first year of operations: 1. Received $33,000 cash in exchange for issuance of common stock. 2. Secured a $101,000 ten-year installment loan from State Bank. The interest rate is 6 percent and annual payments are $13,723. 3. Purchased land for $27,000. 4. Provided services for $95,000. 5. Paid other operating expenses of $49.000. 6. Paid the annual payment on the loan. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement and balance sheet for Year 1. c. What is the interest expense for Year 2? Year 3? Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Bal Sheet Req C Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.)