Match the item to its appropriate section on the statement of cash flows. Be sure you are satisfied with your answers before selecting “check." Your first attempt saves to the gradebook.Purchase equipment with shares of common stock.Noncash investing and financingOperatingCollected $20,000 cash for services performed.FinancingOperatingPurchased two semi-trailer trucks for $170,000 cash.FinancingOperatingBorrowed $200,000 from Castle Bank, signing a 5-year note bearing 8% interest.FinancingIssued 100,000 shares of $5 par value common stock for $800,000 cash.InvestingInvestingPaid employees $12,000 for salaries and wages.FinancingPayment of cash of $1,200 to lenders for interest.Receipt of cash from the sale of capital stock.Payment of cash dividends to the company's stockholders.Sold old equipment and received $1,000.

Operating Activity: Any cash inflow or outflow from principal revenue generating activity is…

Match the item to its appropriate section on the statement of cash flows. Be sure you are satisfied with your answers before selecting "check." Your first attempt saves to the gradebook. Purchase equipment with shares of common stock. Noncash investing and financing Operating Collected $20,000 cash for services performed. Financing Operating Purchased two semi-trailer trucks for $170,000 cash. Financing Borrowed $200,000 from Castle Bank, signing a 5-year note bearing 8% interest. Operating Financing Issued 100,000 shares of $5 par value common stock for $800,000 cash. Investing Investing Paid employees $12,000 for salaries and wages. Financing Payment of cash of $1,200 to lenders for interest. Receipt of cash from the sale of capital stock. Payment of cash dividends to the company's stockholders. Sold old equipment and received $1,000.

Match the item to its appropriate section on the statement of cash flows. Be sure you are satisfied with your answers before selecting "check." Your first attempt saves to the gradebook. Purchase equipment with shares of common stock. Noncash investing and financing Operating Collected $20,000 cash for services performed. Financing Operating Purchased two semi-trailer trucks for $170,000 cash. Financing Borrowed $200,000 from Castle Bank, signing a 5-year note bearing 8% interest. Operating Financing Issued 100,000 shares of $5 par value common stock for $800,000 cash. Investing Investing Paid employees $12,000 for salaries and wages. Financing Payment of cash of $1,200 to lenders for interest. Receipt of cash from the sale of capital stock. Payment of cash dividends to the company's stockholders. Sold old equipment and received $1,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

As the Loans Manager at First Union Bank, you are evaluating Woodlawn Racetrack for a potential loan. An examination of the Notes to the Financial Statements indicate restricted cash at year-end amounts to $100,000. Explain as comprehensively as possible how you would use this information in evaluating Woodlawn’s liquidity
Morray Corporation had the following transactions. Classify each of these transactions by type of cash flow activity (operating, investing, or financing). 1. Issued $160,000 of bonds payable. 2. Paid utilities expense. 3. Issued 500 shares of preferred stock for $45,000. 4. Sold land and a building for $250,000. 5. Loaned $30,000 to Dead End Corporation, receiving Dead End's 1-year, 12% note.
Ultra Day Spa provided $89,900 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less a 2 percent service charge. Required a. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Leave blank to indicate that an element is not affected by the event. b. Based on this information alone, answer the following questions: (1) What is the amount of total assets at the end of the accounting period? (2) What is the amount of revenue reported on the income statement? (3) What is the amount of cash flow from operating activities reported on the statement of cash flows?
For the purpose of borrowing $100,000 (10-year loan with 12% interest annually), Shannon Merchandising Company has submitted the following audited Balance Sheet and Income Statement to Bank. Statement Of Financial Position (Balance Sheet) As of Dec. 31st, 2021 Cash $40,000 Accounts receivable 170,000 Merchandise Inventory 220,000 Land 50000 Building and equipment (net) 470,000 Total assets $950,000 Accounts payable $140,000 Wages payable 100,000 Notes Payable (5-year note) 300,000 Total liabilities 540,000 Common stock, $10 par 310,000 Retained earnings 110,000 Total stockholders' equity 410000 Total liabilities and stockholders' equities $950,000 Income Statement For the Year Ending December 31, 2021 Revenues: Sales $2,880,000 Expenses: Cost of goods sold 1,512,000 Operating expenses 1,128,000 Interest expense 40,000 Income tax expense 80,000 Total Expenses 2,760,000 Net income $120,000 Assume you are the…
es Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. ● $7,000 cash deposit in checking account. . $28,000 bond investment due in 20 years. . $7,000 U.S. Treasury bill due in 1 month. . $400, 3-year loan to an employee. • $1,800 of currency and coins. . $700 of accounts receivable. Checking account Bond investment U.S. Treasury bill Loan to an employee. Currency and coins Accounts receivable $ Amount Total Cash and cash equivalents 7,000 28,000 7,000 400 1,800 700 Included in Cash and Cash Equivalents? Cash and Cash Equivalents Amount $ $ 0 0 0 0 0 0 0
Zirkle Company borrowed $129,000 from Plains Bank on July 31, Year 1. The note carried a 6% interest rate with a one-year term to maturity. Required: a. Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation. b. What is the amount of interest expense for Year 1? c. Prepare a statement of cash flows for the Zirkle Company for Year 1. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a statement of cash flows for the Zirkle Company for Year 1. Note: Cash outflows should be indicated with a minus sign. ZIRKLE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities < Required B Required C
svi
Rick Rambis operates a ski lodge center at Bull Mountain in Alaska. He has just received the monthly bank statement at October 31 from Bull National Bank. The bank statement shows an ending balance at October 31 of $750. The following items are listed on the statement:1. The bank collected rent revenue for Rick in the amount of $330.2. Service charge of $10.3. Two NSF checks from customers totaling $110.4. Printing check charge of $11.In reviewing his cash records and the bank statement, Rick identifies the following:1. Outstanding checks totaling $603.2. Deposit in transit on October 31 of $1,770.3. An error made by Rick: Rick recorded a salary check for $31 but it cleared the bank at $310.Rick’s cash records show a balance on October 31 of $1,997.Requireda) Reconcile the bank account.b) Prepare journal entries that should be made as a result of the bank reconciliation.c) What should the balance in Rick’s Cash account be after the reconciliation?d) What total amount of cash should the…
answer in text form please (without image), Note: .Every entry should have narration please
Mr. Lim started the business a small groceries shop during the year. He is seeking your help to determine the financial results for the year ended 31.12.2020 with the following information extracted from the cash flows record: Opening Bank Inflows: 2,000 Capital 10,000 Cash Sales 30,000 Trable receivable 125,000 165,000 167,000 Outflows: Wages and Salaries 45,000 Rental 18,000 Suppliers 65,000 Office equipment 10,000 (138,000) Closing Cash 29,000 Additional information at the year end: 1. Closing inventory amounted to $8,000. 2. Wages owed amounted to $5,000. 3. Amount of $6,000 still owed to suppliers and amount of $4,000 not yet collected from customers. 4. Mr. Lim intends to use the office equipment for 5 years without any future scrap value. Required: Based on the information above, draft a Statement of Income for the year ended 31.12.2020 for Mr Lim.
Rainey Enterprises loaned $50,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. (Not every cell will require entry. Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Round your answers to the nearest whole dollar.) (1) The loan to Small Co. (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2. RAINEY ENTERPRISES Horizontal Statements Model Assets Equity Income Statement Date Statement of Cash Flow Liabilities Notes Receivable Interest Retained Earnings Cash Receivable Revenue Expense Net Income 1.6/1/Y1 2. 1201/Y1 a. 6/1/Y2 (Adjusting entry) 6/1/Y2…
New On April 1, Year 1, Exotic Motor Cars Incorporated declared a $136,000 cash dividend to be paid on April 30 to shareholders of record on April 15. Required: Record the events occurring on April 1, April 15, and April 30 in a horizontal statements model. In the Statement of Cash Flows column. indicate whether the item is an operating activity (OA), investing activity (IA). or financing activity (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Date April 1 April 15 April 30 Assets 0✓ = 0 = |= Balance Sheet Liabilities 136,000 + 0✔ + (136,000)✓ + Common Stock + 0 + 0+ 0 + Retained Earnings 00 00 Answer is not complete. Revenue 03- 00 03 Income Statement Expenses 0 0 0 = = = Net Income 00 00 0 Statement of Cash Flows 0- 00 (136,000) FA ✔