Green-All Landscaping Company maintains its books on a cash basis. However, the company recently borrowed $140,000 from a local bank, and the bank requires Green-All to provide annual financial statements prepared on an accrual basis. During the current year the following cash flows were recorded: Cash collected for: Services to customers Cash paid for: $ 400,000 Salaries Supplies Rent Insurance Miscellaneous $ 188,000 16,000 72,000 6,000 24,000 306,000 Net operating cash flow $ 94,000 You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: Accounts receivable Prepaid insurance Supplies Accrued liabilities (for miscellaneous expenses) January 1 December 31 $ 44,000 $ 28,000 1,200 1,800 2,600 4,000 6,000 8,400 In addition, you learn that the bank loan was dated September 30 of the current year with principal and interest at 8% due in one year. Depreciation on the company's equipment is $9,600 for the year. Required: Prepare an accrual basis income statement for the current year. (Ignore income taxes.) Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Green-All Landscaping Company maintains its books on a cash basis. However, the company recently borrowed $140,000 from a local bank, and the bank requires Green-All to provide annual financial statements prepared on an accrual basis. During the current year the following cash flows were recorded: Cash collected for: Services to customers Cash paid for: $ 400,000 Salaries Supplies Rent Insurance Miscellaneous $ 188,000 16,000 72,000 6,000 24,000 306,000 Net operating cash flow $ 94,000 You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: Accounts receivable Prepaid insurance Supplies Accrued liabilities (for miscellaneous expenses) January 1 December 31 $ 44,000 $ 28,000 1,200 1,800 2,600 4,000 6,000 8,400 In addition, you learn that the bank loan was dated September 30 of the current year with principal and interest at 8% due in one year. Depreciation on the company's equipment is $9,600 for the year. Required: Prepare an accrual basis income statement for the current year. (Ignore income taxes.) Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A8 please help....
Transcribed Image Text:Green-All Landscaping Company maintains its books on a cash basis. However, the company recently borrowed $140,000 from a local
bank, and the bank requires Green-All to provide annual financial statements prepared on an accrual basis. During the current year the
following cash flows were recorded:
Cash collected for: Services to customers
Cash paid for:
$ 400,000
Salaries
Supplies
Rent
Insurance
Miscellaneous
$ 188,000
16,000
72,000
6,000
24,000
306,000
Net operating cash flow
$ 94,000
You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities:
Accounts receivable
Prepaid insurance
Supplies
Accrued liabilities
(for miscellaneous expenses)
January 1
December 31
$ 44,000
$ 28,000
1,200
1,800
2,600
4,000
6,000
8,400
In addition, you learn that the bank loan was dated September 30 of the current year with principal and interest at 8% due in one year.
Depreciation on the company's equipment is $9,600 for the year.
Required:
Prepare an accrual basis income statement for the current year. (Ignore income taxes.)
Navigation:
1. Use the Open Excel in New Tab button to launch this question.
2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education