ABC Company ended Year 1 with the following account balances:Cash 600, Common Stock 400, and Retained Earnings 200.The following transactions occurred during Year 2:• Issued common stock for $19,000 cash.• ABC borrowed an additional $11,000 from Chris Bank.• ABC earned $9,000 of revenue on account.• ABC incurred $4,000 of operating expenses on account.• Cash collections of accounts receivables were $6,000.• ABC provided additional services to customers for $1,000 cash.• ABC purchased land for $14,000.• ABC used $3,000 in cash to make a partial payment on its accounts payable.• ABC declared and paid a $200 dividend to the stockholders• On December 31 ABC had accrued salaries of $4,000.What is the net cash flow from operating activities shown on the statement of cash flows for the year ending December 31, Year 2?Multiple ChoiceOO$4,000$3,800$6,000None of these answer choices is correct.

The cash flow statement shows the cash inflow and cash outflow due to the operating activities,…

Answered: ABC Company ended Year 1 with the…

Business

Accounting

ABC Company ended Year 1 with the following account balances:

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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Company's balance sheet showed total current assets of $4,250, all of which were required in operations. Its current liabilities consisted of $665 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital? $3,025 $3,176 $2,874 $3,335 $3,502
Vonderheid's balance sheet for December 31, Year 6 appears below: Vonderheid Company Balance Sheet December 31, Year 6 Assets Cash Liabilities and Shareholders' Equity $ 20,000 $ 30,000 Accounts Payable 1,000 Notes Payable 8,000 Interest Payable Interest Receivable 16,000 Notes Receivable 800 Inventory 50,000 Total Current Liabilities $ 36,800 Total Current Assets $ 89,000 Bonds Payable 20,000 Total Liabilities $ 56,800 Land $ 15,000 Building 70 000 Common Stock $ 80,000 20,000 $85 000 Additional Paid-in Capital Retained Earnings Total Land and Building 17,200 Total Shareholders' Equity $117,200 $174,000 Total Assets $174,000 Total Liabilities and Shareholders' Equity The following transactions (a-g) occurred during January Year 7. For each transaction, make the appropriate journal entry to record the transaction. Be sure to also show the effect on the balance sheet equation. a. The firm collected the note receivable of $8,000 and the related accrued interest of $1,000 on January 2.…
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year.2. Calculate the year-end balance in the allowance for uncollectible accounts.
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales, calculate (1) bad debt expense for the year and (2) the year-end balance in the allowance for uncollectible accounts.
The following balances have been excerpted from Chlorine's Statement of Financial Position for the year: Accounts receivable, increase 1,480,000 Accounts payable, decrease 600,000 Accounts written-off 240,000 Cash payment to trade creditors 4,800,000 Cash purchases 1,000,000 Cash received from customers including recoveries 6,000,000 Cash sales 1,200,000 Notes payable - bank, increase 1,200,000 Notes payable-trade, increase 800,000 Notes receivable, decrease 800,000 Purchase discounts 140,000 Purchase returns (P120,000 was refunded from the supplier) 320,000 Recovery of accounts written-off 72,000 Sales discounts 80,000 Sales return (P200,000 was refunded to the customer) 320,000 1. What are correct gross purchases on account? 2. What are the gross purchases? 3. What are the net purchases?
The following balances have been excerpted from Chlorine's Statement of Financial Position for the year: Accounts receivable, increase 1,480,000 Accounts payable, decrease 600,000 Accounts written-off 240,000 Cash payment to trade creditors 4,800,000 Cash purchases 1,000,000 Cash received from customers including recoveries 6,000,000 Cash sales 1,200,000 Notes payable - bank, increase 1,200,000 Notes payable-trade, increase 800,000 Notes receivable, decrease 800,000 Purchase discounts 140,000 Purchase returns (P120,000 was refunded from the supplier) 320,000 Recovery of accounts written-off 72,000 Sales discounts 80,000 Sales return (P200,000 was refunded to the customer) 320,000 1. What are correct gross purchases on account? a. 5,460,000 b. 5,340,000 c. 4,260,000 d. 4,140,000 2. What are the gross purchases? a. 5,140,000 b. 5,260,000 c. 5,752,000 d. 6,340,000 3. What are the net purchases? a. 5,880,000 b. 5,292,000 c. 5,000,000 d. 4,900,000
Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash $20,000 Accounts payable 14,000 Investments (short-term) 2,400 Accrued liabilities payable 3,100 Accounts receivable 4,000 Notes payable (current) 5,500 Inventory 29,000 Notes payable (noncurrent) 49,000 Notes receivable (long-term) 1,400 Long-term lease liabilities 59,000 Equipment 56,000 Common stock 10,600 Factory building 94,000 Additional paid-in capital 95,400 Operating lease right-of-use assets 150,000 Retained earnings 124,100 Intangible assets 3,900 During the current year, the company had the following summarized activities: Purchased short-term investments for $7,200 cash. Lent $6,300 to a supplier, who signed a two-year note. Leased equipment that cost $23,000; paid $5,300 cash and signed a five-year right-of-use lease for the balance. Hired a new president at the end of the year. The contract was for $78,000 per year plus options…
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $350,000; allowance for uncollectible accounts at the beginning of the year, $24,000 (credit balance); credit sales during the year, $1,200,000; accounts receivable written off during the year, $15,000; cash collections from customers, $1,100,000. Assuming the company estimates that future bad debts will equal 12% of the year-end balance in accounts receivable.1. Calculate bad debt expense for the year.2. Calculate the year-end balance in the allowance for uncollectible accounts.
A company has the following account balances at the end of the year:• Credit Sales = $400,000• Accounts receivable = $80,000• Allowance for Uncollectible Accounts = $400 debitThe company estimates future uncollectible accounts to be 4% of accounts receivable. At what amount would Bad Debt Expense be reported in the current year’s income statement? a. $400.b. $2,800.c. $3,200.d. $3,600.
Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash $ 20,000 Accounts payable $ 20,000 Investments (short-term) 3,200 Accrued liabilities payable 2,700 Accounts receivable 4,500 Notes payable (current) 5,000 Inventory 26,000 Notes payable (noncurrent) 49,000 Notes receivable (long-term) 2,000 Common stock 9,200 Equipment 46,000 Additional paid-in capital 82,800 Factory building 94,000 Retained earnings 32,000 Intangibles 5,000 During the current year, the company had the following summarized activities: Purchased short-term investments for $8,400 cash. Lent $6,000 to a supplier who signed a two-year note. Purchased equipment that cost $23,000; paid $4,900 cash and signed a one-year note for the balance. Hired a new president at the end of the year. The contract was for $89,000 per year plus options to…
Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash $22,000 Accounts payable $15,000 Investments (short-term) 3,000 Accrued liabilities payable 4,000 Accounts receivable 3,000 Notes payable (current) 7,000 Inventory 20,000 Notes payable (noncurrent) 87,000 Notes receivable (long-term) 1,000 Long-term lease liabilities 63,000 Equipment 50,000 Common stock 10,000 Factory building 90,000 Additional paid - in capital 117,000 Operating lease right - of - use assets 140,000 Retained earnings 31,000 Intangible assets 5,000 During the current year, the company had the following summarized activities: Purchased short-term investments for $ 10,000 cash. Lent $5,000 to a supplier, who signed a two-year note. Leased equipment that cost $18,000; paid $5,000 cash and signed a five-year right-of-use lease for the balance. Hired a new president at the end of the year. The contract was for $85,000 per year plus…
On January 1. Year 2 Grande Company had a $10,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2. Grande provided $56,000 of service on account. The company collected $52.500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account. What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows? Multiple Choice $51,450 $52.500 $56,000 $46,200