The following information is available about the company. Provide a five-step way to record this information so that it can be used by managers: 1. Investment of the company's shareholders in the amount of 1000 monetary units to establish a company and deposit this amount in a current account in a bank. 2. Purchase of land for 1,500 currency units, half of which will be paid in cash and the rest next year. 3- Purchasing equipment in the amount of 140 monetary units in cash. 4. Buy 500 currency units (60% cash and 40% credit). 5. Receive a loan in the amount of 90

The following information is available about the company. Provide a five-step way to record this information so that it can be used by managers: 1. Investment of the company's shareholders in the amount of 1000 monetary units to establish a company and deposit this amount in a current account in a bank. 2. Purchase of land for 1,500 currency units, half of which will be paid in cash and the rest next year. 3- Purchasing equipment in the amount of 140 monetary units in cash. 4. Buy 500 currency units (60% cash and 40% credit). 5. Receive a loan in the amount of 90

Name: The following information is availableabout the company. Provide a fi
Uploaded: 2024-03-20T06:51:32.000Z
Channel: Bartleby
Description: The following information is availableabout the company. Provide a five-stepway to record this information so that itcan be used by managers:1. Investment of the company'sshareholders in the amount of 1000monetary units to establish a companyand dep

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

Practice help, please.
Can you create a cash flow statement with thus information for me please? Borrow $20,000 from the local bank and sign a note promising to repay the full amount of the debt in 5 years. Cash flow from opearting activities Close out dividends Cash received from customers Close out expenses/losses Cash paid for opearting expenses Close out revenues/income Net cash flow provided by opearting activities Pay cash dividends to shareholders, $600. Pay one year of rent in advance with cash, $12,000 ($1,000 per month.) Cash flow from investing activities Provide 40 hours of services to customers for cash with $50/hour service rate. Cash paid for equipment Purchase 200 units of inventory ($20/unit) with cash. Net cash flow provided by investing activities Purchase equipment necessary for business operations for $15,000 with cash. Purchase supplies with cash, $1000. Cash flow from financing activities Record one month of depreciation on the equipment. The equipment has a useful life of 10 years…
I need help filling out the excel template with this given information. Kate has just completed her first year of Kate's Cards. She has been preparing monthly income statements and balance sheets, so she knows that her company has been profitable and that there is cash in the bank. She has not, however, prepared a statement of cash flows. Kate's provides you with the year-end income statement and balance sheet and asks that you construct an statement of cash flows for Kate's Cards.Additional information:1. There were no disposals of equipment during the year2. Dividends in the amount of $1,300 were paid in cash during the year.3. Prepaid expenses relate to operating expenses.Requireda. Construct an statement of cash flows for Kate's Cards for the year-ended August 31, 2019, using the indirect method. Hint: Since this was Kate's first year of operations, the beginning balance sheet account balances were zero.b. Construct an statement of cash flows for Kate's Cards for the year ended…
Journalize the following: 1. On the books & records of Company A: On May 2nd, Company A received $100 of interest income from the bank earned in April. If the books are on an accrual basis, record the entry in April and in May when cash was received April May 2. On the books & records of Company A: In January, Company A purchased Investment in XYZ for $100. Payment was made in cash. In March, Company A sold Investment in XYZ for $150. Payment was received in cash. 3. On the books & records of Company A: On April 1st, Company A paid $1,200 for insurance expense that covers the year 4/1/17-3/31/18. Record 4/1/17 entry for payment of $1,200 Record 4/30/17 journal entry 4. There are 2 parallel funds, Fund A and Fund B. Together, the funds will make an investment of $100k, with a 65/35 split. The investment will be paid in cash, however, Fund B does not currently have any cash so Fund…
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals. Cash used for purchase of office supplies, $2,150. Cash provided from consulting to customers, $48,100. Cash used for purchase of mining equipment, $78,000. Cash provided from long-term borrowing, $65,000. Cash used for payment of employee salaries, $24,500. Cash used for payment of office rent, $12,500. Cash provided from sale of equipment purchased in c. above, $23,000. Cash used to repay a portion of the long-term borrowing in d. above, $42,500. Cash used to pay office utilities, $4,800. Purchase of company vehicle, paying $10,500 cash. Required: Calculate cash flows from operating activities. (List cash outflows as negative amounts.) Next Visit question map Question 5 of 8 Total5 of 8 Prev
Which of the following scenarios is a financing activity? A.) An observation that, on average, customers return $570 worth of merchandise each month B.) $2,000 received from the bank to aid in the purchase of the building C .) $5,670 recorded as profit for June documented on the income statement D.) Purchase of the building next to the Paisley Place for $25,000 to be used for expansion
25.Gingerbread Corp hired a new intern for the summer. The intern was assigned the job of preparing the year-end statement of cash flow but was having some trouble trying to determine where to classify the following transactions. TRANSACTION Cash Flow Cash payment of dividends to common stockholders 30,000 Cash payment for purchase of land 468,000 Cash proceeds from sale of equipment 15,000 Cash proceeds from issuing Gingerbread common stock 45,000 Cash payments on long-term note payable 175,000 Cash payments to purchase stock in another company 51,000 Determine Net cash from financing. Be careful to analyze if it is a cash outflow (negative) or cash inflow (positive). If the cash flow is negative put the value in parenthesis. Example: (400,000). No dollar signs. Net cash from financing?
a CFE was hired by B Industrial to investigate suspected fraud. the CFE started analyzing the financial statements in CY2021. Cash $20,000 Accounts payable $11,000 Accounts receivable $15,000 Wages payable $5,000 Capital Stock $5,000 Retained earnings $20,000 Inventory $6,000 Notes payable (3-year term) $8,000 Property, plant equipment, net $8,000 Required: Calculate the quick ratio and current ratio.
Nuncio Consulting completed the following transactions during June. a. Armand Nuncio, the owner, invested $35,000 cash along with office equipment valued at $11,000 in the new company. b. The company purchased land valued at $7,500 and a building valued at $40,000. The purchase is paid with $15,000 cash and a long-term note payable for $32,500. c. The company purchased $500 of office supplies on credit. d. A. Nuncio invested his personal automobile in the company. The automobile has a value of $8,000 and is to be used exclusively in the business. e. The company purchased $1,200 of additional office equipment on credit. f. The company paid $1,000 cash salary to an assistant. g. The company provided services to a client and collected $3,200 cash. h. The company paid $540 cash for this month’s utilities. i. The company paid $500 cash to settle the payable created in transaction c. j. The company purchased $3,400 of new office equipment by paying $3,400 cash. k. The company completed…
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.
The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $7,600. b. The firm borrowed $5,400 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,700 were purchased for cash. The original list price of the equipment was $1,900, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,400 was paid for the first month's rent. e. Inventory of $15,200 was purchased; $9,000 cash was paid to the suppliers, and the balance will be paid within 45 days. f. During the first week of operations, merchandise that had cost $3,300 was sold for $7,000 cash. g. A newspaper ad costing $150 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month. h. Additional inventory costing $4,100 was purchased; cash of $1,250 was paid,…
You are a Corporate Credit Analyst for your bank. A new corporate customer in the manufacturing sector approached your bank for a large credit facility in the sum of $20 million for production equipment and warehousing. The customer submitted the following financials to you. The cash position increased from $6.7 million in 2019 to $16 million in 2021. Does this signal a strengthening of the liquidity position of the firm? Explain.