E2-4 (Algo) Determining Financial Statement Effects of Several Transactions LO2-3 The following events occurred for Johnson Company a. Received investment of cash by organizers and distributed to them 1,060 shares of $1 par value common stock with a market price of $20 per share. b. Leased $9,000 of equipment, paying $1,100 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $7,000 cash from a bank. d. Loaned $500 to an employee who signed a note due in six months. e. Purchased $21,678 of land, paid $8,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells

E2-4 (Algo) Determining Financial Statement Effects of Several Transactions LO2-3 The following events occurred for Johnson Company a. Received investment of cash by organizers and distributed to them 1,060 shares of $1 par value common stock with a market price of $20 per share. b. Leased $9,000 of equipment, paying $1,100 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $7,000 cash from a bank. d. Loaned $500 to an employee who signed a note due in six months. e. Purchased $21,678 of land, paid $8,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An analyst has compiled the following information regarding Rubsam, Inc. Liabilities at year-end € 1,000 Contributed capital at year-end € 500 Beginning retained earnings € 600 Revenue during the year € 5,000 Expenses during the year € 4,300 Th ere have been no distributions to owners. Th e analyst’s most likely estimate of total assets at year-end should be closest to: C . €2,800.
Statement of Financial Position as at 31 December 2008 RM 000 Current Liabilities: (15,000) Creditors Proposed Dividends Net Assets Fixed Assets: 17,300 70,500 5,000 (2,000) Fixtures and Fittings (NBV) Equipment Motor Vehicles 156,800 20,500 Intangible Assets Financed by: Capital Reserve 100,000 50,800 6,000 Current Assets: 28,000 Long Term Loan Cash at Bank Stock Debtors 9,000 23,500 156.800 At the end of the year, you have been informed of the following additional information: Palestinian Islamic bank has borrowed through short term financing facilities from a local bank on the 1st April 2008 to buy machinery equipment amounting to RM12,000,000. This amount has already been included as part of the debtors in the Statement of Financial Position. Part of the stocks in the above Statement is stock of goods for sales (Finish foods) valued at RM500,000 • One of the debtors in the above Statement is a non-trade debtor and the amount due is RM1,000,000. Required: Determine the zakatable…
Q4. Analysis of Financial StatementsThere was a bit of concern about one of Big Rock’s newer entities – Big Rock PavingCompany. Management wants you to review the two financial statements below and giveyour analysis of the company’s performance.Big Rock Paving CompanyAssets LiabilitiesCurrent Assets: Current Liabilities:Cash 200,000 Accounts Payable 700,000Accounts Receivable 300,000 Notes Payable 600,000Inventory 800,000Total Current Assets 1,300,000 Total Current Liabilities 1,300,000Fixed Assets: Owners’ Equity:Property, Plant & Equipment 2,200,000 Common Stock ($1 Par) 600,000Less: Accumulated Depreciation 600,000 Capital Surplus 100,000Net Fixed Assets 1,600,000 Retained Earnings 100,000Total Assets 2,900,000 Total Owners’ Equity 800,000Total Liabilities and Owners’Equity2,900,000Big Rock Paving CompanyIncome Statement for Year Ending December 31, 2021Sales 3,400,000Less: Cost of Goods Sold 2,700,000Less: Administrative Expenses 700,000Less Depreciation 682,000Earnings Before…
For the year ended December 31, Year 1, Fields Company made cash payments of $53,200 for dividends, paid interest of $22,000, paid $31,200 cash to suppliers, and purchased equipment for $69,200 cash. What is the net cash used by investing activities for Year 1? Multiple Choice $175.600 $113.200 $69.200 $75.200
#60
Classify the following transaction by type of cash flow activity: Issued 100,000 shares of $5 par value common stock for $800,000 cash. Seleccione una: a. Operating activity b. Noncash transaction c. Investing activity d. Financing activity
E2-4 (Algo) Determining Financial Statement Effects of Several Transactions LO2-3 The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,030 shares of $1 par value common stock with a market price of $15 per share. b. Leased $8,700 of equipment, paying $1,900 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $13,000 cash from a bank. d. Loaned $900 to an employee who signed a note due in six months. e. Purchased $15,381 of land; paid $7,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells blank. Event a. a. b. b. C. C. d. d. e. e. Cash Assets = = = = = = = = = = = Liabilities + + +…
PART I. The Scope and Environment of Financial Management 3-9. (Work a. Prepare a common-sized income statement and a common-sized bal sheet. Interpret your findings. income statement for Kronlokken Company from the following scrambled and a statemer Increase in a Ancrease in a $66,000 225,000 Depreciation expense. Operating in Cash Interest exp 334,000 Increase in Long-term debt 573,000 Sales Dividends 102,000 Accounts payable Increase in 79,000 General and administrative expense Increase in 895,000 Buildings and equipment Depreciatie 75,000 Notes payable Income tax Accounts receivable 153,000 Beginning Interest expense 4,750 Accrued expenses 7,900 3-10. (A 289,000 ing Wes Common stock Cost of goods sold 297,000 Net incom Inventory 99,300 Deprecia Taxes Profits be 50,500 Accumulated depreciation 263,000 Increase Prepaid expenses 14,500 Increase Increase Taxes payable Retained earnings 53,000 Increase 262,900 Cash flo 3-8. (Working with an income statement and balance sheet) Prepare an…