Answered: a. $0; this is an investing activity.…

Name: A company settles a long-term note payable plus interest by paying $68
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is: a. $0; this is an investing

Business

Accounting

a. $0; this is an investing activity. b. $0; this is an operating activity. c. $73,440. d. $68,000. e. $5,440.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Specter Co. 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. $19,000 cash deposit in checking account. $52,000 bond investment due in 20 years. $13,000 U.S. Treasury bill due in 1 month. $1,000, 3-year loan to an employee. $4,200 of currency and coins. $1,300 of accounts receivable. Checking account Bond investment U.S. Treasury bill Loan to an employee Currency and coins Accounts receivable Cash and cash equivalents $
VKS Co. assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5% loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the transaction and is paid up front. What amount should be recorded as a gain or loss on the transfer of accounts receivables?
Katok Company factored P 750,000 of accounts receivable at year end. Control was surrendered. The factor accepted the accounts receivable subject to recourse for non-payment. The factor assessed a fee of 2% and retained a hold back equal to 4% of the accounts receivable In addition, the factor charged 12% interest computed of 51 days. What is the amount of cash initially received from the factoring? a. 692,425b. 720,000c. 722,425d. 705,000
abardeen corporation borrowed 58,000 from the bank on october 1, year 1. the note had a 4 percent annual rate of interest and matured on march 31, year 2. interest and principal were paid in cash on the maturity date. d. what total amount of cash was paid to the bank on march 31, year 2, for principle and interest? e. what amount of interest expense was reported on the year 2 income statement?
Based on the following information, compute cash flows from financing activities under GAAP. Purchase of investments $ 170 Dividends paid 1,120 Interest paid 320 Additional borrowing from bank 2,400
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. . $4,000 cash deposit in checking account. . $22,000 bond investment due in 20 years. • $5,500 U.S. Treasury bill due in 1 month. $250, 3-year loan to an employee. • $1,200 of currency and coins. $550 of accounts receivable. Included in Cash and Cash and Amount Cash Equivalents? Cash Equivalents Amount Checking account $ 4,000 Bond investment 22,000 U.S. Treasury bill 5,500 Loan to an employee 250 Currency and coins 1,200 Accounts receivable 550 Total Cash and cash equivalents
43. In 2021, Allen company reported cash basis income of P 7,800,000. Tracing back its records, accounts receivable and accounts payable on December 31, 2021 were P5,200,000 and P 1,950,000 respectively. During the year, the accounts receivable increased by 200% while accounts payable decreased by 50%. How much were net income using accrual method? CHOICES: P 7,800,000 P 12,350,000 P 8,450,000 P 7,150,000
What is the difference between the trial balance and the balance sheet?
On the indirect statement of cash flows, $500,000 relating to notes payable was subtracted from net income to get indirect cash flow from operations. This must mean that:
The following summary transactions occurred during 2024 for Bluebonnet Bakers: Cash Received from: Collections from customers Interest on notes receivable Collection of notes receivable Sale of investments Issuance of notes payable Cash Paid for: Purchase of inventory $ 380,000 6,000 50,000 30,000 100, 000 160, 000 5,000 85,000 90,000 Interest on notes payable Purchase of equipment Salaries to employees Payment of notes payable Dividends to shareholders The balance of cash and cash equivalents at the beginning of 2024 was $17,000. 25,000 20,000 Required: Prepare a statement of cash flows for 2024 for Bluebonnet Bakers. Use the direct method for reporting operating activities. Note: Amounts to be deducted should be indicated with a minus sign.
Using the Exhibit below, assume that the balance of Accounts Receivable was $61,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Receivable is $62,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts receivable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on…
Ultra Day Spa provided $89,900 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less a 2 percent service charge. Required a. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) 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). Leave blank to indicate that an element is not affected by the event. b. Based on this information alone, answer the following questions: (1) What is the amount of total assets at the end of the accounting period? (2) What is the amount of revenue reported on the income statement? (3) What is the amount of cash flow from operating activities reported on the statement of cash flows?