Homework Help is Here – Start Your Trial Now!
Business
Accounting
Waddell Company had the following balances in its accounting records as of December 31, Year 1. Liabilities and Equity Assets Cash Accounts Receivable Land $ 53,000 Accounts Payable 45,000 Common Stock 29,000 Retained Earnings $ 127,000 Total $ 21,000 90,000 16,000 $ 127,000 Total The following accounting events apply to Waddell Company's Year 2 fiscal year: January 1 February 1 March 1 April 1 May 1 July 1 September 1 Sold land for $20,000 cash that had originally cost $20,000. October 1 December 31 Earned $56,000 of service revenue on account during the year. December 31 Received cash collections from accounts receivable amounting to $57,000. December 31 Incurred other operating expenses on account during the year that amounted to $12,000. December 31 Recognized accrued salaries expense of $4,400. December 31 Had $150 of supplies on hand at the end of the period. December 31 The land purchased on April 1 had a market value of $40,000. Acquired $38,000 cash from the issue of common stock. Paid $5,100 cash in advance for a one-year lease for office space. Paid a $2,600 cash dividend to the stockholders. Purchased additional land that cost $29,000 cash. Made a cash payment on accounts payable of $12, 000. Received $8,800 cash in advance as a retainer for services to be performed mònthly over the coming year. Purchased $1,040 of supplies on account. Required Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements. (Hint. Enter items in general ledger accounts under the accounting equation before answering the questions.) a. What amount would Waddell report for land on the balance sheet? b. What amount of net cash flow from operating activities would be reported on the statement of cash flows? c. What amount of rent expense would be reported on the income statement?

Waddell Company had the following balances in its accounting records as of December 31, Year 1. Liabilities and Equity Assets Cash Accounts Receivable Land $ 53,000 Accounts Payable 45,000 Common Stock 29,000 Retained Earnings $ 127,000 Total $ 21,000 90,000 16,000 $ 127,000 Total The following accounting events apply to Waddell Company's Year 2 fiscal year: January 1 February 1 March 1 April 1 May 1 July 1 September 1 Sold land for $20,000 cash that had originally cost $20,000. October 1 December 31 Earned $56,000 of service revenue on account during the year. December 31 Received cash collections from accounts receivable amounting to $57,000. December 31 Incurred other operating expenses on account during the year that amounted to $12,000. December 31 Recognized accrued salaries expense of $4,400. December 31 Had $150 of supplies on hand at the end of the period. December 31 The land purchased on April 1 had a market value of $40,000. Acquired $38,000 cash from the issue of common stock. Paid $5,100 cash in advance for a one-year lease for office space. Paid a $2,600 cash dividend to the stockholders. Purchased additional land that cost $29,000 cash. Made a cash payment on accounts payable of $12, 000. Received $8,800 cash in advance as a retainer for services to be performed mònthly over the coming year. Purchased $1,040 of supplies on account. Required Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements. (Hint. Enter items in general ledger accounts under the accounting equation before answering the questions.) a. What amount would Waddell report for land on the balance sheet? b. What amount of net cash flow from operating activities would be reported on the statement of cash flows? c. What amount of rent expense would be reported on the income statement?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Waddell Company had the following balances in its accounting records as of December 31, Year 1. Liabilities and Equity Assets Cash Accounts Receivable Land $ 53,000 Accounts Payable 45,000 Common Stock 29,000 Retained Earnings $ 127,000 Total $ 21,000 90,000 16,000 $ 127,000 Total The following accounting events apply to Waddell Company's Year 2 fiscal year: January 1 February 1 Paid $5,100 cash in advance for a one-year lease for office space. March 1 April 1 May 1 July 1 September 1 Sold land for $20,000 cash that had originally cost $20,000. October 1 December 31 Earned $56,000 of service revenue on account during the year. December 31 Received cash collections from accounts receivable amounting to $57,000. December 31 Incurred other operating expenses on account during the year that amounted to $12,000. December 31 Recognized accrued salaries expense of $4,400. December 31 Had $150 of supplies on hand at the end of the period. December 31 The land purchased on April 1 had a market value of $40,000. Acquired $38,000 cash from the issue of common stock. Paid a $2,600 cash dividend to the stockholders. Purchased additional land that cost $29,000 cash. Made a cash payment on accounts payable of $12,000. Received $8,800 cash in advance as a retainer for services to be performed mònthly over the coming year. Purchased $1,040 of supplies on account. Required Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements. (Hint: Enter items in general ledger accounts under the accounting equation before answering the questions.) a. What amount would Waddell report for land on the balance sheet? b. What amount of net cash flow from operating activities would be reported on the statement of cash flows? c. What amount of rent expense would be reported on the income statement? d. What amount of total liabilities would be reported on the balance sheet? e. What amount of supplies expense would be reported on the income statement? f. What amount of unearned revenue would be reported on the balance sheet? g. What amount of net cash flow from investing activities would be reported on the statement of cash flows? h. What amount of total expenses would be reported on the income statement? i. What amount of service revenue would be reported on the income statement? j. What amount of cash flows from financing activities would be reported on the statement of cash flows? L What amount of net income would he renorted on the income statement? ( Prev 1 of 1 Next MacBook Pro
Transcribed Image Text:Waddell Company had the following balances in its accounting records as of December 31, Year 1. Liabilities and Equity Assets Cash Accounts Receivable Land $ 53,000 Accounts Payable 45,000 Common Stock 29,000 Retained Earnings $ 127,000 Total $ 21,000 90,000 16,000 $ 127,000 Total The following accounting events apply to Waddell Company's Year 2 fiscal year: January 1 February 1 Paid $5,100 cash in advance for a one-year lease for office space. March 1 April 1 May 1 July 1 September 1 Sold land for $20,000 cash that had originally cost $20,000. October 1 December 31 Earned $56,000 of service revenue on account during the year. December 31 Received cash collections from accounts receivable amounting to $57,000. December 31 Incurred other operating expenses on account during the year that amounted to $12,000. December 31 Recognized accrued salaries expense of $4,400. December 31 Had $150 of supplies on hand at the end of the period. December 31 The land purchased on April 1 had a market value of $40,000. Acquired $38,000 cash from the issue of common stock. Paid a $2,600 cash dividend to the stockholders. Purchased additional land that cost $29,000 cash. Made a cash payment on accounts payable of $12,000. Received $8,800 cash in advance as a retainer for services to be performed mònthly over the coming year. Purchased $1,040 of supplies on account. Required Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements. (Hint: Enter items in general ledger accounts under the accounting equation before answering the questions.) a. What amount would Waddell report for land on the balance sheet? b. What amount of net cash flow from operating activities would be reported on the statement of cash flows? c. What amount of rent expense would be reported on the income statement? d. What amount of total liabilities would be reported on the balance sheet? e. What amount of supplies expense would be reported on the income statement? f. What amount of unearned revenue would be reported on the balance sheet? g. What amount of net cash flow from investing activities would be reported on the statement of cash flows? h. What amount of total expenses would be reported on the income statement? i. What amount of service revenue would be reported on the income statement? j. What amount of cash flows from financing activities would be reported on the statement of cash flows? L What amount of net income would he renorted on the income statement? ( Prev 1 of 1 Next MacBook Pro
CH Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements. (Hìnt: accounts under the accounting equation before answering the questions.) (Do not round intermediate calculations. Enter any decreases to account balanc require entry.) Stockholders' Equity Liabilities Assets Common Retained Unearned Revenue Accounts Salaries Stock Earnings Date Cash Accounts Prepaid Rent Supplies Land Payable Payable Receivable %3D Bal. + + %3D Jan. 1 + Feb. 1 Mar. 1 %3D April 1 + %3D May 1 July 1 Sept. 1 es + Oct. 1 + Dec. 31 %3D + Dec. 31 Dec. 31 Dec. 31 Dec. 31 + Dec. 31 %3D + Dec. 31 Dec. 31 Bal. 0 + < Accounting Equation Req A to L > < Prev 1 of 1 Next>
Transcribed Image Text:CH Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements. (Hìnt: accounts under the accounting equation before answering the questions.) (Do not round intermediate calculations. Enter any decreases to account balanc require entry.) Stockholders' Equity Liabilities Assets Common Retained Unearned Revenue Accounts Salaries Stock Earnings Date Cash Accounts Prepaid Rent Supplies Land Payable Payable Receivable %3D Bal. + + %3D Jan. 1 + Feb. 1 Mar. 1 %3D April 1 + %3D May 1 July 1 Sept. 1 es + Oct. 1 + Dec. 31 %3D + Dec. 31 Dec. 31 Dec. 31 Dec. 31 + Dec. 31 %3D + Dec. 31 Dec. 31 Bal. 0 + < Accounting Equation Req A to L > < Prev 1 of 1 Next>
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS