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:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 2CE

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Consider the following financial data for Smith Corp.: Balance Sheet as of December 31, 2019 Cash $ 195,000 Accounts payable $ 94,000 Receivables 185,500 Short-term bank note 119,500 Inventories 214,500 Accruals 71,000 Total current assets $ 595,000 Total current liabilities $ 284,500 Long-term debt 462,500 Net plant & equip. 621,500 Common equity 469,500 Total assets $ 1,216,500 Total liab. & equity $ 1,216,500 Profit & Loss Statement for 2019 Industry Average Ratios Net sales $ 1,265,000 Current ratio 1.9× Cost of sales 986,500 Quick ratio 1.2× Gross profit $ 278,500 Days sales outstanding 64 days Operating expenses 166,500 Inventory turnover 3.3× EBIT $ 112,000 Total asset turnover 0.7× Interest expense 32,000 Net profit margin 9.1% Pre-tax income $ 80,000…
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Alpha company provided the followinginformation for the month of December: Cash balance per ledger 5,000,000 Cash balance per bank statement 5,500,000 Proceeds of bank loan discounted on December 1 for one year at 14% 516,000 Undeposited collections on December 31300,000 Check of Omega Company had been incorrectly deducted by bank from Alpha Company account 50,000 Check of Alpha Company in payment ofan account payable had been recorded by the depositor as P20,000. The correctamount is 200,000 The ledger account for cash was the only cash account kept by the entity.It included a petty cash account comprised of the following items: Currency and coin 4,000 Supplies 2,000 Transportation 3,000 Postage1,000 Deposit of Omega Company credited by bank to the account of Alpha Company 130,000 Deposit of December 27 omitted from bankstatement 150,000 Outstanding checks 544,000 Requirement: (1) Prepare a bank reconciliation using theadjusted balance approach.(2) Prepare…
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On December 31, Blossom Ltd. had a cash balance of $18,390 in its general ledger. The bank statement from the National Bank on that date showed a balance of $15,330. A comparison of the bank statement with the Cash account revealed the following: 1. 2. 3. 4. 5. (a) Cheques outstanding on November 30 totalled $3,980. Of these, $2,600 worth cleared the bank in December. All cheques written in December cleared the bank in December. A deposit of $2,390 made on December 31, was not recorded by National Bank until January 5. Supplies of $1,010 were paid via EFT during the month of December. The company has already recorded these. The bank statement showed automatic EFT withdrawals for utility payments totalling $1,500. The bank statement included service charges and debit and credit card processing fees of $550. Prepare the bank reconciliation at December 31. (List items that increase balance as per bank & books first.) BLOSSOM LTD. Bank Reconciliation December 31