Balance Sheet June 30th, Year 5 Assets Liabilities and Equity Cash 10,000 Accounts Payable 19,000 Accounts receivables 34,000 Wages Payable 4,000 Inventory 60,000 Income Tax Payable 1,000 Prepaid Insurance 4,000 Notes Payables 80,000 Capital Assets 200,000 Common Shares 100,000 Accumulated depreciation (40,000) Retained Earnings 64,000 Total Assets 268,000 Total Liabilities and Equity 268,000 The following are all transactions that happened during Year 6: Made all sales on account of $246,200 Collected accounts receivable of $243,280 Purchased merchandise on account of $134,000 Determined cost of goods sold was $140,000 Paid accounts payable (for merchandise purchased) of $143,000 Paid wages to employees of $52,500 Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6. Paid insurance premium of $18,000 to extend coverage for three years. Allocated $5,000 of prepaid insurance to insurance expense. Recorded Year 6 total income tax expense (and income tax payable) of $13,000 Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes). Depreciation for the year $10,000 Required 1: What is the amount of Cash received from customers? $ Required 2: How much is the net income (loss) of the year 6? $ Required 3: What is the amount of cash generated (used) by accounts receivables? $
Assets Liabilities and Equity
Cash 10,000 Accounts Payable 19,000
Accounts receivables 34,000 Wages Payable 4,000
Inventory 60,000 Income Tax Payable 1,000
Prepaid Insurance 4,000 Notes Payables 80,000
Capital Assets 200,000 Common Shares 100,000
Accumulated
Total Assets 268,000 Total Liabilities and Equity 268,000
The following are all transactions that happened during Year 6:
Made all sales on account of $246,200
Collected
Purchased merchandise on account of $134,000
Determined cost of goods sold was $140,000
Paid accounts payable (for merchandise purchased) of $143,000
Paid wages to employees of $52,500
Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6.
Paid insurance premium of $18,000 to extend coverage for three years.
Allocated $5,000 of prepaid insurance to insurance expense.
Recorded Year 6 total income tax expense (and income tax payable) of $13,000
Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes).
Depreciation for the year $10,000
Required 1: What is the amount of Cash received from customers? $
Required 2: How much is the net income (loss) of the year 6? $
Required 3: What is the amount of cash generated (used) by accounts receivables? $
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
