Entity A has a cash balance of P30,000 on January 1, 2021. The following were the cash transactions during the year: a. Payment for the acquisition of equipment, P300,000. b. Collections from clients for services rendered, P870,000. c. Cash repayment of loan obtained from a bank, P70,000. d. Cash disbursements for drawing by owner, P90,000. e. Payments to suppliers for the purchase inventory, P80,000. f. Payments for salaries expense, P210,000. g. Payments for insurance expense, P105,000. h. Payments for utilities expense, P30,000. I. Cash receipt from additional investment by owner, P30,000. Requirement: Prepare the statement of cash flows. Use the direct method of presenting cash flow from operating activities. Make sure to write the proper heading.
Entity A has a cash balance of P30,000 on January 1, 2021. The following were the cash transactions during the year: a. Payment for the acquisition of equipment, P300,000. b. Collections from clients for services rendered, P870,000. c. Cash repayment of loan obtained from a bank, P70,000. d. Cash disbursements for drawing by owner, P90,000. e. Payments to suppliers for the purchase inventory, P80,000. f. Payments for salaries expense, P210,000. g. Payments for insurance expense, P105,000. h. Payments for utilities expense, P30,000. I. Cash receipt from additional investment by owner, P30,000. Requirement: Prepare the statement of cash flows. Use the direct method of presenting cash flow from operating activities. Make sure to write the proper heading.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 6AP
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![Entity A has a cash balance of P30,000 on January 1, 2021. The following were the cash transactions during the year:
a. Payment for the acquisition of equipment, P300,000.
b. Collections from clients for services rendered, P870,000.
C. Cash repayment of loan obtained from a bank, P70,000.
d. Cash disbursements for drawing by owner, P90,000.
e. Payments to suppliers for the purchase inventory, P80,000.
f. Payments for salaries expense, P210,000.
g. Payments for insurance expense, P105,000.
h.
Payments for utilities expense, P30,000.
I. Cash receipt from additional investment by owner, P30,000.
Requirement: Prepare the statement of cash flows. Use the direct method of presenting cash flow from operating
activities. Make sure to write the proper heading.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9a8c1de-2464-4567-96ce-e94b35284f9e%2Fba261695-9e07-4e24-8d3e-2bf9063e9688%2Fe94lfn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Entity A has a cash balance of P30,000 on January 1, 2021. The following were the cash transactions during the year:
a. Payment for the acquisition of equipment, P300,000.
b. Collections from clients for services rendered, P870,000.
C. Cash repayment of loan obtained from a bank, P70,000.
d. Cash disbursements for drawing by owner, P90,000.
e. Payments to suppliers for the purchase inventory, P80,000.
f. Payments for salaries expense, P210,000.
g. Payments for insurance expense, P105,000.
h.
Payments for utilities expense, P30,000.
I. Cash receipt from additional investment by owner, P30,000.
Requirement: Prepare the statement of cash flows. Use the direct method of presenting cash flow from operating
activities. Make sure to write the proper heading.
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