Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working. To prepare: The general journal entries for the following transaction.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 2, Problem 3PSA

1.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: The general journal entries for the following transaction.

1.

Expert Solution

Answer to Problem 3PSA

The total for journal entries is $216420

Explanation of Solution

Date (March)	Particular	PR	Dr.	Cr.
1^s^tMarch	Cash	101	150,000
	Office Equipment	163	22,000
	To Common stock	307		172000
	(Owner’s investment)


2ⁿ^dMarch	Prepaid rent	131	6000
	To Cash	101		6000
	(Paid in advance for rent)

3^r^dMarch	Office equipment	163	3000
	Office supplies	124	1200
	To account payable	201		4200
	(Purchased office equipment and office supplies)

6^t^hMarch	Cash	101	4000
	To Service revenue	403		4000
	(Received cash for provided service)

9^t^hMarch	Account receivable	106	7500
	To service revenue	403		7500
	(Provide service on credit)

12^t^hMarch	Account payable	201	4200
	Cash	101		4200
	(Paid cash that was due)

19^t^hMarch	Prepaid Insurance	128	5000
	To cash	101		5000
	(Paid cash as premium for insurance)

22^t^hMarch	Cash	101	3500
	Account receivable	106		3500
	(Received cash)

25^t^hMarch	Account receivable	106	3820
	Service revenue	403		3820

29^t^hMarch	Dividends	319	5100
	Cash	101		5100
	(to record the payment of cash as a dividend)


30^t^hMarch	Office supplies	163	600
	To Accounts payable	201		600
	(Purchase office supplies on credit)

31^t^hMarch	Utilities expense	690	500
	To Cash	101		500
	(Paid cash for utilities)

	Total		216420	216420

2.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Ledger for the following transactions.

2.

Expert Solution

Answer to Problem 3PSA

Balance of cash ledger is $136700, account receivable $7820, dividend $5300, office supplies $1800, prepaid insurance is $5000, prepaid rent $6000, office equipment $25000, Account payable $600, Common stock $172000, service revenue $15320, and utilities is $500

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	150000		150000
2ⁿ^dMarch	G1		6000
6^t^hMarch	G1	4000
12^t^hMarch	G1		4200
19^t^hMarch	G1		5000
22ⁿ^dMarch	G1	3500
28^t^hMarch	G1		5100
30^t^hMarch	G1		500	136700

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
9^t^hMarch	G1	7500		7500
22ⁿ^dMarch	G1		3500	4000
25^t^hMarch	G1	3820		7820

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hMarch	G1	500		5000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	22000		22000
3^t^hMarch	G1	3000		25000

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
3^r^dMarch	G1	1200		1200
30^t^hMarch	G1	600		1800

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dMarch	G1	600		6000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
3^t^hMarch	G1		4200	4200
12^t^hMarch	G1	4200		0
30^t^hMarch	G1		600	600

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1		172000	172000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
29^t^hMarch	G1	5100		5100

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
6^t^hMarch	G1		4000	4000
9^t^hMarch	G1		7500	11500
25^t^hMarch	G1		3820	15320

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hMarch	G1	500		500

3.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Trail balance.

3.

Expert Solution

Answer to Problem 3PSA

Total of trail balance is $187920

Explanation of Solution

HTrail balance30^t^hMarch.
Particular	Dr.	Cr.
Cash	136700
Account receivable	7820
Office supplies	1800
Prepaid insurance	5000
Prepaid rent	6000
Office equipment	25000
Account payable		600
Common Stock		172000
Dividend	5,100
Service revenue		15320
Utilities	500
Total	187920	187920

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

One company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True False

no chatgpAccumulated Depreciation will appear as a deduction within the section of the balance sheet labeled as Property, Plant and Equipment. True False

No ai Depreciation Expense is shown on the income statement in order to achieve accounting's matching principle. True False

Answer 2

Question

Chapter 2, Problem 3PSA

1.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: The general journal entries for the following transaction.

1.

Expert Solution

Answer to Problem 3PSA

The total for journal entries is $216420

Explanation of Solution

Date (March)	Particular	PR	Dr.	Cr.
1^s^tMarch	Cash	101	150,000
	Office Equipment	163	22,000
	To Common stock	307		172000
	(Owner’s investment)


2ⁿ^dMarch	Prepaid rent	131	6000
	To Cash	101		6000
	(Paid in advance for rent)

3^r^dMarch	Office equipment	163	3000
	Office supplies	124	1200
	To account payable	201		4200
	(Purchased office equipment and office supplies)

6^t^hMarch	Cash	101	4000
	To Service revenue	403		4000
	(Received cash for provided service)

9^t^hMarch	Account receivable	106	7500
	To service revenue	403		7500
	(Provide service on credit)

12^t^hMarch	Account payable	201	4200
	Cash	101		4200
	(Paid cash that was due)

19^t^hMarch	Prepaid Insurance	128	5000
	To cash	101		5000
	(Paid cash as premium for insurance)

22^t^hMarch	Cash	101	3500
	Account receivable	106		3500
	(Received cash)

25^t^hMarch	Account receivable	106	3820
	Service revenue	403		3820

29^t^hMarch	Dividends	319	5100
	Cash	101		5100
	(to record the payment of cash as a dividend)


30^t^hMarch	Office supplies	163	600
	To Accounts payable	201		600
	(Purchase office supplies on credit)

31^t^hMarch	Utilities expense	690	500
	To Cash	101		500
	(Paid cash for utilities)

	Total		216420	216420

2.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Ledger for the following transactions.

2.

Expert Solution

Answer to Problem 3PSA

Balance of cash ledger is $136700, account receivable $7820, dividend $5300, office supplies $1800, prepaid insurance is $5000, prepaid rent $6000, office equipment $25000, Account payable $600, Common stock $172000, service revenue $15320, and utilities is $500

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	150000		150000
2ⁿ^dMarch	G1		6000
6^t^hMarch	G1	4000
12^t^hMarch	G1		4200
19^t^hMarch	G1		5000
22ⁿ^dMarch	G1	3500
28^t^hMarch	G1		5100
30^t^hMarch	G1		500	136700

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
9^t^hMarch	G1	7500		7500
22ⁿ^dMarch	G1		3500	4000
25^t^hMarch	G1	3820		7820

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hMarch	G1	500		5000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	22000		22000
3^t^hMarch	G1	3000		25000

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
3^r^dMarch	G1	1200		1200
30^t^hMarch	G1	600		1800

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dMarch	G1	600		6000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
3^t^hMarch	G1		4200	4200
12^t^hMarch	G1	4200		0
30^t^hMarch	G1		600	600

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1		172000	172000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
29^t^hMarch	G1	5100		5100

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
6^t^hMarch	G1		4000	4000
9^t^hMarch	G1		7500	11500
25^t^hMarch	G1		3820	15320

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hMarch	G1	500		500

3.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Trail balance.

3.

Expert Solution

Answer to Problem 3PSA

Total of trail balance is $187920

Explanation of Solution

HTrail balance30^t^hMarch.
Particular	Dr.	Cr.
Cash	136700
Account receivable	7820
Office supplies	1800
Prepaid insurance	5000
Prepaid rent	6000
Office equipment	25000
Account payable		600
Common Stock		172000
Dividend	5,100
Service revenue		15320
Utilities	500
Total	187920	187920

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 2, Problem 3PSA

1.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: The general journal entries for the following transaction.

1.

Expert Solution

Answer to Problem 3PSA

The total for journal entries is $216420

Explanation of Solution

Date (March)	Particular	PR	Dr.	Cr.
1^s^tMarch	Cash	101	150,000
	Office Equipment	163	22,000
	To Common stock	307		172000
	(Owner’s investment)


2ⁿ^dMarch	Prepaid rent	131	6000
	To Cash	101		6000
	(Paid in advance for rent)

3^r^dMarch	Office equipment	163	3000
	Office supplies	124	1200
	To account payable	201		4200
	(Purchased office equipment and office supplies)

6^t^hMarch	Cash	101	4000
	To Service revenue	403		4000
	(Received cash for provided service)

9^t^hMarch	Account receivable	106	7500
	To service revenue	403		7500
	(Provide service on credit)

12^t^hMarch	Account payable	201	4200
	Cash	101		4200
	(Paid cash that was due)

19^t^hMarch	Prepaid Insurance	128	5000
	To cash	101		5000
	(Paid cash as premium for insurance)

22^t^hMarch	Cash	101	3500
	Account receivable	106		3500
	(Received cash)

25^t^hMarch	Account receivable	106	3820
	Service revenue	403		3820

29^t^hMarch	Dividends	319	5100
	Cash	101		5100
	(to record the payment of cash as a dividend)


30^t^hMarch	Office supplies	163	600
	To Accounts payable	201		600
	(Purchase office supplies on credit)

31^t^hMarch	Utilities expense	690	500
	To Cash	101		500
	(Paid cash for utilities)

	Total		216420	216420

2.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Ledger for the following transactions.

2.

Expert Solution

Answer to Problem 3PSA

Balance of cash ledger is $136700, account receivable $7820, dividend $5300, office supplies $1800, prepaid insurance is $5000, prepaid rent $6000, office equipment $25000, Account payable $600, Common stock $172000, service revenue $15320, and utilities is $500

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	150000		150000
2ⁿ^dMarch	G1		6000
6^t^hMarch	G1	4000
12^t^hMarch	G1		4200
19^t^hMarch	G1		5000
22ⁿ^dMarch	G1	3500
28^t^hMarch	G1		5100
30^t^hMarch	G1		500	136700

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
9^t^hMarch	G1	7500		7500
22ⁿ^dMarch	G1		3500	4000
25^t^hMarch	G1	3820		7820

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hMarch	G1	500		5000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	22000		22000
3^t^hMarch	G1	3000		25000

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
3^r^dMarch	G1	1200		1200
30^t^hMarch	G1	600		1800

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dMarch	G1	600		6000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
3^t^hMarch	G1		4200	4200
12^t^hMarch	G1	4200		0
30^t^hMarch	G1		600	600

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1		172000	172000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
29^t^hMarch	G1	5100		5100

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
6^t^hMarch	G1		4000	4000
9^t^hMarch	G1		7500	11500
25^t^hMarch	G1		3820	15320

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hMarch	G1	500		500

3.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Trail balance.

3.

Expert Solution

Answer to Problem 3PSA

Total of trail balance is $187920

Explanation of Solution

HTrail balance30^t^hMarch.
Particular	Dr.	Cr.
Cash	136700
Account receivable	7820
Office supplies	1800
Prepaid insurance	5000
Prepaid rent	6000
Office equipment	25000
Account payable		600
Common Stock		172000
Dividend	5,100
Service revenue		15320
Utilities	500
Total	187920	187920

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 2, Problem 3PSA

1.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: The general journal entries for the following transaction.

1.

Expert Solution

Answer to Problem 3PSA

The total for journal entries is $216420

Explanation of Solution

Date (March)	Particular	PR	Dr.	Cr.
1^s^tMarch	Cash	101	150,000
	Office Equipment	163	22,000
	To Common stock	307		172000
	(Owner’s investment)


2ⁿ^dMarch	Prepaid rent	131	6000
	To Cash	101		6000
	(Paid in advance for rent)

3^r^dMarch	Office equipment	163	3000
	Office supplies	124	1200
	To account payable	201		4200
	(Purchased office equipment and office supplies)

6^t^hMarch	Cash	101	4000
	To Service revenue	403		4000
	(Received cash for provided service)

9^t^hMarch	Account receivable	106	7500
	To service revenue	403		7500
	(Provide service on credit)

12^t^hMarch	Account payable	201	4200
	Cash	101		4200
	(Paid cash that was due)

19^t^hMarch	Prepaid Insurance	128	5000
	To cash	101		5000
	(Paid cash as premium for insurance)

22^t^hMarch	Cash	101	3500
	Account receivable	106		3500
	(Received cash)

25^t^hMarch	Account receivable	106	3820
	Service revenue	403		3820

29^t^hMarch	Dividends	319	5100
	Cash	101		5100
	(to record the payment of cash as a dividend)


30^t^hMarch	Office supplies	163	600
	To Accounts payable	201		600
	(Purchase office supplies on credit)

31^t^hMarch	Utilities expense	690	500
	To Cash	101		500
	(Paid cash for utilities)

	Total		216420	216420

2.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Ledger for the following transactions.

2.

Expert Solution

Answer to Problem 3PSA

Balance of cash ledger is $136700, account receivable $7820, dividend $5300, office supplies $1800, prepaid insurance is $5000, prepaid rent $6000, office equipment $25000, Account payable $600, Common stock $172000, service revenue $15320, and utilities is $500

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	150000		150000
2ⁿ^dMarch	G1		6000
6^t^hMarch	G1	4000
12^t^hMarch	G1		4200
19^t^hMarch	G1		5000
22ⁿ^dMarch	G1	3500
28^t^hMarch	G1		5100
30^t^hMarch	G1		500	136700

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
9^t^hMarch	G1	7500		7500
22ⁿ^dMarch	G1		3500	4000
25^t^hMarch	G1	3820		7820

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hMarch	G1	500		5000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	22000		22000
3^t^hMarch	G1	3000		25000

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
3^r^dMarch	G1	1200		1200
30^t^hMarch	G1	600		1800

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dMarch	G1	600		6000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
3^t^hMarch	G1		4200	4200
12^t^hMarch	G1	4200		0
30^t^hMarch	G1		600	600

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1		172000	172000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
29^t^hMarch	G1	5100		5100

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
6^t^hMarch	G1		4000	4000
9^t^hMarch	G1		7500	11500
25^t^hMarch	G1		3820	15320

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hMarch	G1	500		500

3.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Trail balance.

3.

Expert Solution

Answer to Problem 3PSA

Total of trail balance is $187920

Explanation of Solution

HTrail balance30^t^hMarch.
Particular	Dr.	Cr.
Cash	136700
Account receivable	7820
Office supplies	1800
Prepaid insurance	5000
Prepaid rent	6000
Office equipment	25000
Account payable		600
Common Stock		172000
Dividend	5,100
Service revenue		15320
Utilities	500
Total	187920	187920

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2, Problem 3PSA

1.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: The general journal entries for the following transaction.

1.

Expert Solution

Answer to Problem 3PSA

The total for journal entries is $216420

Explanation of Solution

Date (March)	Particular	PR	Dr.	Cr.
1^s^tMarch	Cash	101	150,000
	Office Equipment	163	22,000
	To Common stock	307		172000
	(Owner’s investment)


2ⁿ^dMarch	Prepaid rent	131	6000
	To Cash	101		6000
	(Paid in advance for rent)

3^r^dMarch	Office equipment	163	3000
	Office supplies	124	1200
	To account payable	201		4200
	(Purchased office equipment and office supplies)

6^t^hMarch	Cash	101	4000
	To Service revenue	403		4000
	(Received cash for provided service)

9^t^hMarch	Account receivable	106	7500
	To service revenue	403		7500
	(Provide service on credit)

12^t^hMarch	Account payable	201	4200
	Cash	101		4200
	(Paid cash that was due)

19^t^hMarch	Prepaid Insurance	128	5000
	To cash	101		5000
	(Paid cash as premium for insurance)

22^t^hMarch	Cash	101	3500
	Account receivable	106		3500
	(Received cash)

25^t^hMarch	Account receivable	106	3820
	Service revenue	403		3820

29^t^hMarch	Dividends	319	5100
	Cash	101		5100
	(to record the payment of cash as a dividend)


30^t^hMarch	Office supplies	163	600
	To Accounts payable	201		600
	(Purchase office supplies on credit)

31^t^hMarch	Utilities expense	690	500
	To Cash	101		500
	(Paid cash for utilities)

	Total		216420	216420

2.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Ledger for the following transactions.

2.

Expert Solution

Answer to Problem 3PSA

Balance of cash ledger is $136700, account receivable $7820, dividend $5300, office supplies $1800, prepaid insurance is $5000, prepaid rent $6000, office equipment $25000, Account payable $600, Common stock $172000, service revenue $15320, and utilities is $500

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	150000		150000
2ⁿ^dMarch	G1		6000
6^t^hMarch	G1	4000
12^t^hMarch	G1		4200
19^t^hMarch	G1		5000
22ⁿ^dMarch	G1	3500
28^t^hMarch	G1		5100
30^t^hMarch	G1		500	136700

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
9^t^hMarch	G1	7500		7500
22ⁿ^dMarch	G1		3500	4000
25^t^hMarch	G1	3820		7820

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hMarch	G1	500		5000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	22000		22000
3^t^hMarch	G1	3000		25000

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
3^r^dMarch	G1	1200		1200
30^t^hMarch	G1	600		1800

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dMarch	G1	600		6000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
3^t^hMarch	G1		4200	4200
12^t^hMarch	G1	4200		0
30^t^hMarch	G1		600	600

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1		172000	172000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
29^t^hMarch	G1	5100		5100

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
6^t^hMarch	G1		4000	4000
9^t^hMarch	G1		7500	11500
25^t^hMarch	G1		3820	15320

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hMarch	G1	500		500

3.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Trail balance.

3.

Expert Solution

Answer to Problem 3PSA

Total of trail balance is $187920

Explanation of Solution

HTrail balance30^t^hMarch.
Particular	Dr.	Cr.
Cash	136700
Account receivable	7820
Office supplies	1800
Prepaid insurance	5000
Prepaid rent	6000
Office equipment	25000
Account payable		600
Common Stock		172000
Dividend	5,100
Service revenue		15320
Utilities	500
Total	187920	187920

Answer 6

Chapter 2, Problem 3PSA

1.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: The general journal entries for the following transaction.

1.

Expert Solution

Answer to Problem 3PSA

The total for journal entries is $216420

Explanation of Solution

Date (March)	Particular	PR	Dr.	Cr.
1^s^tMarch	Cash	101	150,000
	Office Equipment	163	22,000
	To Common stock	307		172000
	(Owner’s investment)


2ⁿ^dMarch	Prepaid rent	131	6000
	To Cash	101		6000
	(Paid in advance for rent)

3^r^dMarch	Office equipment	163	3000
	Office supplies	124	1200
	To account payable	201		4200
	(Purchased office equipment and office supplies)

6^t^hMarch	Cash	101	4000
	To Service revenue	403		4000
	(Received cash for provided service)

9^t^hMarch	Account receivable	106	7500
	To service revenue	403		7500
	(Provide service on credit)

12^t^hMarch	Account payable	201	4200
	Cash	101		4200
	(Paid cash that was due)

19^t^hMarch	Prepaid Insurance	128	5000
	To cash	101		5000
	(Paid cash as premium for insurance)

22^t^hMarch	Cash	101	3500
	Account receivable	106		3500
	(Received cash)

25^t^hMarch	Account receivable	106	3820
	Service revenue	403		3820

29^t^hMarch	Dividends	319	5100
	Cash	101		5100
	(to record the payment of cash as a dividend)


30^t^hMarch	Office supplies	163	600
	To Accounts payable	201		600
	(Purchase office supplies on credit)

31^t^hMarch	Utilities expense	690	500
	To Cash	101		500
	(Paid cash for utilities)

	Total		216420	216420

Answer 7

Chapter 2, Problem 3PSA

1.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: The general journal entries for the following transaction.

Answer 8

1.

Expert Solution

Answer to Problem 3PSA

The total for journal entries is $216420

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Date (March)	Particular	PR	Dr.	Cr.
1^s^tMarch	Cash	101	150,000
	Office Equipment	163	22,000
	To Common stock	307		172000
	(Owner’s investment)


2ⁿ^dMarch	Prepaid rent	131	6000
	To Cash	101		6000
	(Paid in advance for rent)

3^r^dMarch	Office equipment	163	3000
	Office supplies	124	1200
	To account payable	201		4200
	(Purchased office equipment and office supplies)

6^t^hMarch	Cash	101	4000
	To Service revenue	403		4000
	(Received cash for provided service)

9^t^hMarch	Account receivable	106	7500
	To service revenue	403		7500
	(Provide service on credit)

12^t^hMarch	Account payable	201	4200
	Cash	101		4200
	(Paid cash that was due)

19^t^hMarch	Prepaid Insurance	128	5000
	To cash	101		5000
	(Paid cash as premium for insurance)

22^t^hMarch	Cash	101	3500
	Account receivable	106		3500
	(Received cash)

25^t^hMarch	Account receivable	106	3820
	Service revenue	403		3820

29^t^hMarch	Dividends	319	5100
	Cash	101		5100
	(to record the payment of cash as a dividend)


30^t^hMarch	Office supplies	163	600
	To Accounts payable	201		600
	(Purchase office supplies on credit)

31^t^hMarch	Utilities expense	690	500
	To Cash	101		500
	(Paid cash for utilities)

	Total		216420	216420

Answer 13

2.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Ledger for the following transactions.

2.

Expert Solution

Answer to Problem 3PSA

Balance of cash ledger is $136700, account receivable $7820, dividend $5300, office supplies $1800, prepaid insurance is $5000, prepaid rent $6000, office equipment $25000, Account payable $600, Common stock $172000, service revenue $15320, and utilities is $500

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	150000		150000
2ⁿ^dMarch	G1		6000
6^t^hMarch	G1	4000
12^t^hMarch	G1		4200
19^t^hMarch	G1		5000
22ⁿ^dMarch	G1	3500
28^t^hMarch	G1		5100
30^t^hMarch	G1		500	136700

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
9^t^hMarch	G1	7500		7500
22ⁿ^dMarch	G1		3500	4000
25^t^hMarch	G1	3820		7820

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hMarch	G1	500		5000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	22000		22000
3^t^hMarch	G1	3000		25000

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
3^r^dMarch	G1	1200		1200
30^t^hMarch	G1	600		1800

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dMarch	G1	600		6000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
3^t^hMarch	G1		4200	4200
12^t^hMarch	G1	4200		0
30^t^hMarch	G1		600	600

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1		172000	172000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
29^t^hMarch	G1	5100		5100

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
6^t^hMarch	G1		4000	4000
9^t^hMarch	G1		7500	11500
25^t^hMarch	G1		3820	15320

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hMarch	G1	500		500

Answer 14

2.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Ledger for the following transactions.

Answer 15

2.

Expert Solution

Answer to Problem 3PSA

Balance of cash ledger is $136700, account receivable $7820, dividend $5300, office supplies $1800, prepaid insurance is $5000, prepaid rent $6000, office equipment $25000, Account payable $600, Common stock $172000, service revenue $15320, and utilities is $500

Answer 16

2.

Expert Solution

Answer 17

2.

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	150000		150000
2ⁿ^dMarch	G1		6000
6^t^hMarch	G1	4000
12^t^hMarch	G1		4200
19^t^hMarch	G1		5000
22ⁿ^dMarch	G1	3500
28^t^hMarch	G1		5100
30^t^hMarch	G1		500	136700

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
9^t^hMarch	G1	7500		7500
22ⁿ^dMarch	G1		3500	4000
25^t^hMarch	G1	3820		7820

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hMarch	G1	500		5000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1	22000		22000
3^t^hMarch	G1	3000		25000

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
3^r^dMarch	G1	1200		1200
30^t^hMarch	G1	600		1800

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dMarch	G1	600		6000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
3^t^hMarch	G1		4200	4200
12^t^hMarch	G1	4200		0
30^t^hMarch	G1		600	600

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tMarch	G1		172000	172000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
29^t^hMarch	G1	5100		5100

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
6^t^hMarch	G1		4000	4000
9^t^hMarch	G1		7500	11500
25^t^hMarch	G1		3820	15320

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hMarch	G1	500		500

Answer 20

3.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Trail balance.

3.

Expert Solution

Answer to Problem 3PSA

Total of trail balance is $187920

Explanation of Solution

HTrail balance30^t^hMarch.
Particular	Dr.	Cr.
Cash	136700
Account receivable	7820
Office supplies	1800
Prepaid insurance	5000
Prepaid rent	6000
Office equipment	25000
Account payable		600
Common Stock		172000
Dividend	5,100
Service revenue		15320
Utilities	500
Total	187920	187920

Answer 21

3.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.

To prepare: Trail balance.

Answer 22

3.

Expert Solution

Answer to Problem 3PSA

Total of trail balance is $187920

Answer 23

3.

Expert Solution

Answer 24

3.

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

HTrail balance30^t^hMarch.
Particular	Dr.	Cr.
Cash	136700
Account receivable	7820
Office supplies	1800
Prepaid insurance	5000
Prepaid rent	6000
Office equipment	25000
Account payable		600
Common Stock		172000
Dividend	5,100
Service revenue		15320
Utilities	500
Total	187920	187920