Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the followinginformation:Income Statement for Current YearService revenueExpensesSalariesDepreciationAmortization of copyrightsOther expensesNet lossPartial Balance SheetAccounts receivableSalaries payableOther accrued liabilities$ 42,0008,20022010,200Current Year$ 9,30013,0001,500Cash flows from operating activities:RODRIGUEZ COMPANYStatement of Cash Flows (Partial)$ 53,00060,620$ (7,620)Prior Year$ 16,600In addition, Rodriguez bought a small service machine for $7,000.Required:1.Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method.Note: List loss amount and cash outflows as negative amounts.2,0005,200

Cash flow from operating activities is computed by direct method or indirect method.Under indirect…

Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information: Income Statement for Current Year Service revenue Expenses Salaries Depreciation Amortization of copyrights Other expenses Net loss $ 42,000 8,200 220 10,200 $ 53,000 Partial Balance Sheet Current Year Accounts receivable $ 9,300 Salaries payable 13,000 1,500 Other accrued liabilities. In addition, Rodriguez bought a small service machine for $7,000. RODRIGUEZ COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities: 60,620 $(7,620) Prior Year $ 16,600 Required: 1.Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method. Note: List loss amount and cash outflows as negative amounts. 2,000 5,200

Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information: Income Statement for Current Year Service revenue Expenses Salaries Depreciation Amortization of copyrights Other expenses Net loss $ 42,000 8,200 220 10,200 $ 53,000 Partial Balance Sheet Current Year Accounts receivable $ 9,300 Salaries payable 13,000 1,500 Other accrued liabilities. In addition, Rodriguez bought a small service machine for $7,000. RODRIGUEZ COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities: 60,620 $(7,620) Prior Year $ 16,600 Required: 1.Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method. Note: List loss amount and cash outflows as negative amounts. 2,000 5,200

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

At the end of the reporting period, Pinky Corp. shows the following account for machinery it had assembled for its own use during the period: Cash paid for equipment, including VAT of P9,600 Insurance costs for current year 89,600 1,500 Cost of dismantling old machine 14,480 Cash proceeds from sale of old machine 12,000 Raw materials used in construction of new machine 76,000 Labor on construction of new machine 49,000 Cost of installation 11,200 Costs of water devices to keep machine cool 8,000 Materials spoiled in machine trial runs 2,400 Profit on construction 24,000 Purchase of machine tools 13,000 Costs of adjustments to machine to make it operate more efficiently 7,500 An analysis of the details in the account disclosed the following: a. Cash discounts received on the payments for materials used in construction totaled P3,000, and these were reported in the purchase discounts account. b. The factory overhead account shows a balance of P292,000 for the current period; this balance…
A company purchased new equipment for $62,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,100; sales tax paid $3,400; and installation cost, $2,700. The cost recorded for the equipment was: Multiple Cholce $69,200. $66,500. $62,000. $63,100.
Given the following information for Sookie’s Cookies Co., calculate the depreciation expense: sales = $96,581; costs = $67,448; addition to retained earnings = $1,079; dividends paid = $329; interest expense = $1,641; tax rate = 37 percent. (Hint: Build the Income Statement and fill in the missing pieces until you get to the depreciation expense. You may have to work from bottom up.)
The following financial information is available for Hero Sports Ltd.:Sales : $45,000Costs : $25,000Addition to retained earnings : $5,500Dividends paid : $900Interest expense : $1,450Tax rate : 40% -Compute the depreciation expense. PLEASE SHOW THE WORKING TYPED OUT SO I CAN UNDERSTAND THE STEPS. NO SPREADSHEETS
Dillard Company starts the year with $10,000 in its cash account, $10,000 in its equipment account, $3,000 in accumulated depreciation and $17,000 in its retained earnings account. During the year Dillard sells the equipment for $6530. After the sale of equipment is recorded, the retained earnings account will have a balance of $________.
On August 15, MJC Company purchased new equipment for $91,500 by paying cash. Other costs associated with the equipment were: transportation costs, $2,100; sales tax paid, $7,500; and installation cost, $4,800. At what amount will the equipment be recorded on a balance sheet? Multiple Choice $105,900. $98,400. $99,000. $93,600.
On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server sold the machine to Patron Corporation and recorded the following entry: Cash Account Accumulated Depreciation Machine Gain on Sale of Equipment Debit Odebited for $25,000. O debited for $1,000. O credited for $45,000. Odebited for $15,000. 45,000 28,000 Credit 70,000 3,000 Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. Based on the preceding information, in the preparation of the 20X9 consolidated balance sheet, in the consolidation entry machine will be:
A company began constructing a new warehouse for its operations during the current year. In the year the company incurred interest of $20,000 on a working capital loan, and interest on a construction loan for the warehouse of $80,000. Interest computed on the average accumulated expenditures for the warehouse construction was $40,000. What amount of interest should be expensed for the year?
Jada Company had the following transactions during the year: Purchased a machine for $440,000 using a long-term note to finance it. Paid $460 for ordinary repair. Purchased a patent for $48,000 cash. Paid $160,000 cash for addition to an existing building. Paid $52,000 for monthly salaries. Paid $240 for routine maintenance on equipment. Paid $10,000 for major repairs. Depreciation expense recorded for the year is $20,000. A) If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions? B) What amount did Jada report on the income statement for expenses for the year?
Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year
The draft financial statements of Enjoy Ltd for the year ended 31 December 20X6 are given below. The following additional information is also provided: (i) Plant with an original cost of $800 and accumulated depreciation of $600 was sold for $200. (ii) Interest expense was $350 of which $140 was paid during the period. $130 relating to interest expense of the prior period was also paid during the period. (iii) Investment income included $250 of interest that was received during the period and $250 of interest still to be received. The $250 of interest still to be received is included within other receivables. (iv) Investment income also included $300 of dividend that was received. Statement of Profit and Loss for the year ended 31 December 20X6: Sales 44,870 Cost of sales 31,000 Gross Profit…
A hydraulic crane service company had sales revenue of $2,250,000 from operations during tax-year 1. The following table provides other financial information relating to the tax year: Labor expenses Materials costs Depreciation expenses $550,000 $385,000 $132,500 Interest expenses Rental expenses Proceeds from sale of old equipment with a $23,000 book value of $20,000 $22,200 $45,000