The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $150.20 (90.10) Cost of goods sold Gross margin Salaries expense Insurance expense 60.10 $20.20 12.20 5.10 Depreciation expense Interest expense 6.10 (43.60) Gains and losses: Gain on sale of equipment 12.20 (3.20) 25.50 Loss on sale of land Income before tax (12.75) $ 12.75 Income tax expense Net income Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income $ 12.75 Adjustments for noncash effects: Decrease in accounts receivable 5.10 Gain on sale of equipment Increase in inventory Increase in accounts payable Increase in salaries payable Depreciation expense Decrease in bond discount (12.20) (6.10) 9.10 3.10 5.10 3.05 2.10 Decrease in prepaid insurance Loss on sale of land 3.20 Increase in income tax payable 6.10 Net cash flows from operating activities $ 31.30 Required: 1. Provide the summary journal entries which shows the cash flow for each of the following for Mike Roe Computers during the reporting period: (a) received from customers, (b) paid to suppliers, (c) paid to employees, (d) paid for interest, (e) paid for insurance, (f) paid for income taxes.
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $150.20 (90.10) Cost of goods sold Gross margin Salaries expense Insurance expense 60.10 $20.20 12.20 5.10 Depreciation expense Interest expense 6.10 (43.60) Gains and losses: Gain on sale of equipment 12.20 (3.20) 25.50 Loss on sale of land Income before tax (12.75) $ 12.75 Income tax expense Net income Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income $ 12.75 Adjustments for noncash effects: Decrease in accounts receivable 5.10 Gain on sale of equipment Increase in inventory Increase in accounts payable Increase in salaries payable Depreciation expense Decrease in bond discount (12.20) (6.10) 9.10 3.10 5.10 3.05 2.10 Decrease in prepaid insurance Loss on sale of land 3.20 Increase in income tax payable 6.10 Net cash flows from operating activities $ 31.30 Required: 1. Provide the summary journal entries which shows the cash flow for each of the following for Mike Roe Computers during the reporting period: (a) received from customers, (b) paid to suppliers, (c) paid to employees, (d) paid for interest, (e) paid for insurance, (f) paid for income taxes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Transcribed Image Text:Journal entry worksheet
A
E
F
>
Record the summary journal entry showing cash paid to employees during the
reporting period.
Note: Enter debits before credits.
Event
General Journal
Debit
Credit
С.
Record entry
Clear entry
View general journal
Transcribed Image Text:The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe
Computers.
MIKE ROE COMPUTERS
Income Statement
For the Year Ended December 31, 2021
($ in millions)
Sales
$150.20
(90.10)
Cost of goods sold
Gross margin
Salaries expense
60.10
$20.20
Insurance expense
12.20
Depreciation expense
Interest expense
5.10
6.10
(43.60)
Gains and losses:
Gain on sale of equipment
12.20
Loss on sale of land
(3.20)
Income before tax
25.50
Income tax expense
(12.75)
$ 12.75
Net income
Reconciliation of Net Income
to Net Cash Flows
from Operating Activities
($ in millions)
Net income
$ 12.75
Adjustments for noncash effects:
Decrease in accounts receivable
5.10
Gain on sale of equipment
Increase in inventory
(12.20)
(6.10)
Increase in accounts payable
Increase in salaries payable
Depreciation expense
9.10
3.10
5.10
Decrease in bond discount
3.05
Decrease in prepaid insurance
2.10
Loss on sale of land
3.20
Increase in income tax payable
6.10
Net cash flows from operating activities
$ 31.30
Required:
1. Provide the summary journal entries which shows the cash flow for each of the following for Mike Roe Computers during the
reporting period: (a) received from customers, (b) paid to suppliers, (c) paid to employees, (d) paid for interest, (e) paid for insurance, (f)
paid for income taxes.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education