On May 1, Year 3, Love Corporation declared a $94,200 cash dividend to be paid on May 31 to shareholders of record on May 15.RequiredRecord the events occurring on May 1 and May 31 in a horizontal statements model. In the Cash Flow column, indicate whether theitem is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave thecell blank. (Enter any decreases to account balances with a minus sign.)DateMay 1May 31Balance SheetAssets = LiabilitiesCommonStockLOVE CORPORATIONHorizontal Statements ModelRetained:EarningsRevenue:Income StatementExpenseNet IncomeStatement of CashFlow

All assets must equal all liabilities plus all equity, which means that the accounting equation must…

Answered: On May 1, Year 3, Love Corporation…

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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The following T-account is a summary of the Cash account of Lily Company. Cash (Summary Form) Balance, Jan. 1 Receipts from customers Dividends on stock investments Proceeds from sale of equipment Proceeds from issuance of bonds payable Balance, Dec. 31 Net cash 7,400 368,400 Payments for goods 297,800 6,200 Payments for operating expenses 140,700 36,900 Interest paid 11,200 Taxes paid 499,700 Dividends paid 400,700 8,300 What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows? (Show amount that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) provided by financing activities $ 59,900
The following T-account is a summary of the cash account of Shamrock Company. Cash (Summary Form) Balance, Jan. 1 Receipts from customers Dividends on stock investments Proceeds from sale of equipment Proceeds from issuance of bonds payable Balance, Dec. 31 16,000 728,000 Payments for goods 12,000 Payments for operating expenses 280,000 72,000 Interest paid Taxes paid 600,000 Dividends paid Net cash 632,000 provided by financing activities $ 400,000 What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows? (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) 312000 20,000 16,000 80,000
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Whispering Mining Company declared, on April 20, a dividend of $466,000 payable on June 1. Of this amount, $128,000 is a return of capital. Prepare the April 20 and June 1 entries for Whispering. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Apr. 20 June 1 Debit Credit
Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value GOLDEN CORPORATION Comparative Balance Sheets December 31 Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation)…
The following T-account is a summary of the Cash account of Blossom Company. Balance, Jan. 1 Receipts from customers Dividends on stock investments Proceeds from sale of equipment Proceeds from issuance of bonds payable Balance, Dec. 31 Cash (Summary Form) Net cash 21,600 982,800 Payments for goods 16,200 97,200 540,000 Payments for operating expenses 378,000 Interest paid 27,000 Taxes paid 21,600 810,000 Dividends paid 853,200 What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows? (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) 108,000 by financing activities $
1 Required Information [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Assets Cash Req 1 For both the current year and one year ago, compute the following ratios 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Complete this question by entering your answers in the tabs below. Accounts receivable, net Merchandise inventory Prepaid…
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The comparative balance sheets and income statements for Rundle Company follow: Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income Additional Data $38,810 (15,383) 23,427 (3,925) 19,502 500 (50) $19,952 Year 2 $24,843 2,492 6,517 Cash flows from operating activities: 20,854 (10,472) 16,379 $60,613 $2,490 2,695 20,700 34,728 $60,613 RUNDLE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Year 1 $2,506 1,495 6,110 1. During Year 2, the company sold equipment for $18,357; it had originally cost $28,700. Accumulated depreciation on this equipment was $10,843…

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