In Year 1, Lee Inc. billed its customers $56,600 for services performed. The company collected $41,700 of the amount billed. Lee incurred $36,100 of other operating expenses on account. Lee paid $24,400 of the accounts payable. Lee acquired $25,000 cash from the issue of common stock. The company invested $14,000 cash in the purchase of land. Required (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: a. What amount of revenue will Lee report on the Year 1 income statement? b. What amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? f. What is the amount of net cash flow from investing activities? g. What is the amount of net cash flow from financing activities? h. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet? Complete this question by entering your answers in the tabs below. Accounting Equation Req A to D Req F to H Record the effects of each accounting event under the appropriate general ledger account headings. (Enter any decreases to account balanc minus sign.)
In Year 1, Lee Inc. billed its customers $56,600 for services performed. The company collected $41,700 of the amount billed. Lee incurred $36,100 of other operating expenses on account. Lee paid $24,400 of the accounts payable. Lee acquired $25,000 cash from the issue of common stock. The company invested $14,000 cash in the purchase of land. Required (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: a. What amount of revenue will Lee report on the Year 1 income statement? b. What amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? f. What is the amount of net cash flow from investing activities? g. What is the amount of net cash flow from financing activities? h. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet? Complete this question by entering your answers in the tabs below. Accounting Equation Req A to D Req F to H Record the effects of each accounting event under the appropriate general ledger account headings. (Enter any decreases to account balanc minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:In Year 1, Lee Inc. billed its customers $56,600 for services performed. The company collected $41,700 of the amount billed. Lee
incurred $36,100 of other operating expenses on account. Lee paid $24,400 of the accounts payable. Lee acquired $25,000 cash
from the issue of common stock. The company invested $14,000 cash in the purchase of land.
Required
(Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation
before attempting to answer the questions.) Use the preceding information to answer the following questions:
a. What amount of revenue will Lee report on the Year 1 income statement?
b. What amount of cash flow from revenue will be reported on the statement of cash flows?
c. What is the net income for the period?
d. What is the net cash flow from operating activities for the period?
f. What is the amount of net cash flow from investing activities?
g. What is the amount of net cash flow from financing activities?
h. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet?
Complete this question by entering your answers in the tabs below.
Accounting
Equation
Reg A to D
Record the effects of each accounting event under the appropriate general ledger account headings. (Enter any decreases to account balances with
minus sign.)
Event
Req F to H
1 Sales on account
2 Collected accounts receivable
3. Incurred expense
4. Paid accounts payable
5 Issue of stock
6. Purchase land
Totals
LEE INC.
Effect of Events on the General Ledger Accounts
Cash
0
Assets
Accounts
Receivable
Land
0
Accounting Equation
Liabilities +
Accounts
Payable
0
+
+
+
+
+
+
+
+
Stockholders' Equity
Common
Stock
0
Req A to D >
+
+
+
+
+
+
+
+
Retained
Earnings
0
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