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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