E2-30. Apply Financial Statement Linkages to Understand TransactionsConsider the effects of the independent transactions, a through g, on a company's balance sheet, incomestatement, and statement of cash flow. Complete the table below to explain the effects and financialstatement linkages. Use "+" to indicate the account increases and "-" to indicate the account decreases.Refer to Exhibit 2-10 as a guide for the linkages.Balance SheetCash...Noncash assetsTotal liabilities...Contributed capital.Retained earningsOther equity.Statement of Cash FlowsOperating cash flowInvesting cash flow.Financing cash flowIncome StatementRevenuesExpensesNet income.Statement of Stockholders' EquityContributed capital.Retained earningsb.|||C.d.||||||||e.|||f.9.||| ||| |||a. Owners invested cash in the company in exchange for shares of common stock.b. The company received cash from the bank for a loan.c. The company purchased equipment to manufacture goods for sale and paid with cash.d. The company manufactured a custom piece of inventory and paid cash for materials and labor. Thecompany sold the inventory for more than cost, and the customer promised to pay for the inventoryin 30 days.e. The company paid monthly rent for a manufacturing space.f. The company paid cash dividends to the owners.g. The company received cash from the customer in transaction d.

According to the double-entry system, each transaction affects two accounts out of which is debit…

Answered: a. Owners invested cash in the company…

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 owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the final report: Net revenue $ 345,000 Cost of goods sold 304,000 Value of production materials on hand 42,500 Value of work-in-process inventory 49,000 Value of finished goods on hand 18,500 a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.) b. Compute the weeks of supply (WS). (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Using the following information: a. Beginning cash balance on March 1, $77,000. b. Cash receipts from sales, $300,000. c. Cash payments for direct materials, $139,000. d. Cash payments for direct labor, $72,000. e. Cash payments for overhead, $43,000. f. Cash payments for sales commissions, $7,000 g. Cash payments for interest, $120 (1% of beginning loan balance of $12,000) h. Cash repayment of loan, $12,000. Prepare a cash budget for March for Gado Company. GADO COMPANY Cash Budget March Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month
ss. Subject :- Accounting
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Mia works in both the jewelry department and the cosmetics department of a retail store. She assists customers in both departments and organizes merchandise in both departments. The store allocates her wages between the two departments based on the time worked in the two departments in each two-week pay period. Mia reports the following hours and activities spent in the two departments in the most recent two weeks. Allocate Mia's $2,400 of wages for two weeks to the two departments. Activities Selling in jewelry department Organizing in Jewelry department Selling in cosmetics department Organizing in Cosmetics department Total Department Hours worked Jewelry Cosmetics Totals Hours 39 18 14 5 76 Percent of Hours worked Numerator Denominator Percent of hours Wages Cost Allocated
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Problem 1 - FIT, Inc., operates a chain of sporting goods stores in the southwestern United States. Each store has a store manager, several sales associates, and two or three office staff personnel. The store manager is paid $4,000 per month plus a bonus based on the amount of sales. Sales associates receive a salary of $3 per hour and a commission of 3% of their total sales. Office staff receive hourly wages. Each of the stores is leased at a monthly rent of $6,000. Required: Classify each of the following costs incurred by FIT as fixed, variable, or mixed: ____________ (a.) Office staff salaries relative to the amount of sales recorded by an individual store ____________ (b.) Store manager’s compensation, relative to the amount of sales recorded by a store ____________ (c.) Cost for bags (used to bag each customer’s purchase) and cash register tape relative to amount of sales recorded by a store ____________ (d.) Lease cost relative to the amount of sales recorded by a store…
Using the following information: a. Beginning cash balance on March 1, $80,00. b. Cash receipts from sales, $306,000. c. Cash payments for direct materials, $135,000. d. Cash payments for direct labor, $73,000. e. Cash payments for overhead, $41,000. f. Cash payments for sales commissions, $7,000 g. Cash payments for interest, $110 (1% of beginning loan balance of $11,000) h. Cash repayment of loan, $11,000. Prepare a cash budget for March for Gado Company. GADO COMPANY Cash Budget March Total cash available Less: Cash payments for Total cash payments Loan activity Loan balance, end of month D-pptx A Presentation3.pptx 1 Jarvis CST 141.00...pptx A Musical Theatre Hi...ppt re to search
$ Mapleton Corporation builds sailboats. On January 1, Year 3, the company had the following account balances: $48,000 for both cash and common stock, Boat 25 was started on February 10 and finished on May 31. To build the boat, Mapleton had incurred cash costs of $8,640 for labor and $7,500 for materials. During the same period, Mapleton paid $11,160 cash for actual manufacturing overhead costs. The company expects to incur $210,600 of indirect overhead cost during Year 3. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $162,000. Mapleton uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required a. Use the horizontal financial statements model to record Mapleton's business events. The first row shows beginning balances. b. If Mapleton desires to earn a profit equal to 20 percent of…
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A company began operations in March with cash and common stock of $36,000. The company made $582,000 in net income in its first month. It performed print jobs for customers and billed these customers $900,000. The company collected half of its receivables by the end of the month. The company had a cost of goods sold of $162,000 paid for in cash and $6,000 inventory left over at the end of the month. The company's employees earned wages but those are not paid until the first of April. This was the company’s only liability. How would I calculate the income statement and balance sheet for the end of March?

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