Cowboy Ice Cream (CIC) issued $18,000 of common stock when the company was started. In addition, CIC borrowed $52,000 from a local bank on July 1, Year 1. The note had a 5 percent annual interest rate and a one-year term to maturity. CIC recognized $80,500 of revenue on account in Year 1 and $94,800 of revenue on account in Year 2. Cash collections of accounts receivable were $64,500 in Year 1 and $74,700 in Year 2. CIC paid $47,000 of other operating expenses in Year 1 and $53,000 of other operating expenses in Year 2. CIC repaid the loan and interest at the maturity date. Required a. Organize the information in accounts under an accounting equation. b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? c. What amount of interest expense would be reported on the Year 1 income statement?
Cowboy Ice Cream (CIC) issued $18,000 of common stock when the company was started. In addition, CIC borrowed $52,000 from a local bank on July 1, Year 1. The note had a 5 percent annual interest rate and a one-year term to maturity. CIC recognized $80,500 of revenue on account in Year 1 and $94,800 of revenue on account in Year 2. Cash collections of accounts receivable were $64,500 in Year 1 and $74,700 in Year 2. CIC paid $47,000 of other operating expenses in Year 1 and $53,000 of other operating expenses in Year 2. CIC repaid the loan and interest at the maturity date. Required a. Organize the information in accounts under an accounting equation. b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? c. What amount of interest expense would be reported on the Year 1 income statement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello I need some help, also need B, C, D, E, F, G, H, I
Transcribed Image Text:Req A
Req B to I
Organize the information in accounts under an accounting equation. (Enter any decreases to accour
cells will require entry.)
Cowboy Ice Cream Company
Effect of Events on the Accounting Equation
Year 1 and Year 2
Assets
Liabilities
Stockholders' Equity
Event
Common
Stock
Notes
Interest
Retained
Accounts
Receivable
Cash
Payable
Payable
Earnings
Year 1
1.
2.
3.
4.
5.
6.
End. Bal.
Year 2
Beg.bal.
1.
2.
3.
4.
5.
End bal.
Req B to I >
+ + + + + +
+ + +
+ + + + + + +
+ + + + + + +
+ + + + +
+ +
+ + + + +
Transcribed Image Text:Cowboy Ice Cream (CIC) issued $18,000 of common stock when the company was started. In addition, CIC borrowed $52,000 from a
local bank on July 1, Year 1. The note had a 5 percent annual interest rate and a one-year term to maturity. CIC recognized $80,500 of
revenue on account in Year 1 and $94,800 of revenue on account in Year 2. Cash collections of accounts receivable were $64,500 in
Year 1 and $74,700 in Year 2. CIC paid $47,000 of other operating expenses in Year 1 and $53,000 of other operating expenses in Year
2. CIC repaid the loan and interest at the maturity date.
Required
a. Organize the information in accounts under an accounting equation.
b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement?
c. What amount of interest expense would be reported on the Year 1 income statement?
d. What amount of total liabilities would be reported on the December 31, Year 1, balance sheet?
e. What amount of retained earnings would be reported on the December 31, Year 1, balance sheet?
f. What amount of cash flow from financing activities would be reported on the Year 1 statement of cash flows?
g. What amount of interest expense would be reported on the Year 2 income statement?
h. What amount of cash flows from operating activities would be reported on the Year 2 cash flow statement?
1. What amount of assets would be reported on the December 31, Year 2, balance sheet?
Complete this question by entering your answers in the tabs below.
Reg A
Reg B to I
Organize the information in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all
cells will require entry.)
Cowboy Ice Cream Company
Effect of Events on the Accounting Equation
Year 1 and Year 2
Assets
Liabilities
Stockholders' Equity
%3D
Event
Retained
Notes
Payable
Interest
Common
Accounts
Receivable
Cash
Payable
Stock
Earnings
Year 1
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