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Karakaraka Boom’s cash balance on January 1, 2021 was ₱40,000. The following were the transactions that affected the cash during the period: Cash Receipt from loan obtained from a bank, ₱360,000 Payments for utilities expenses, ₱40,000 Payments to suppliers for the purchase of inventory, ₱240,000 Payment for the acquisition of equipment, ₱400,000 Collections from customers for the sale of goods, ₱1,160,000 Cash receipt from additional investment by the owner, ₱40,000 Payments for employee salaries, ₱280,000 Payment for rent expense, ₱140,000 Cash disbursements for drawings by the owner, ₱120,000 Requirement: Prepare a direct method Statement of Cash

Karakaraka Boom’s cash balance on January 1, 2021 was ₱40,000. The following were the transactions that affected the cash during the period: Cash Receipt from loan obtained from a bank, ₱360,000 Payments for utilities expenses, ₱40,000 Payments to suppliers for the purchase of inventory, ₱240,000 Payment for the acquisition of equipment, ₱400,000 Collections from customers for the sale of goods, ₱1,160,000 Cash receipt from additional investment by the owner, ₱40,000 Payments for employee salaries, ₱280,000 Payment for rent expense, ₱140,000 Cash disbursements for drawings by the owner, ₱120,000 Requirement: Prepare a direct method Statement of Cash

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Karakaraka Boom’s cash balance on January 1, 2021 was ₱40,000. The following were the transactions that affected the cash during the period:

  1. Cash Receipt from loan obtained from a bank, ₱360,000
  2. Payments for utilities expenses, ₱40,000
  3. Payments to suppliers for the purchase of inventory, ₱240,000
  4. Payment for the acquisition of equipment, ₱400,000
  5. Collections from customers for the sale of goods, ₱1,160,000
  6. Cash receipt from additional investment by the owner, ₱40,000
  7. Payments for employee salaries, ₱280,000
  8. Payment for rent expense, ₱140,000
  9. Cash disbursements for drawings by the owner, ₱120,000 Requirement: Prepare a direct method Statement of Cash
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