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.

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Answer 1

Question

Chapter 2, Problem 3PSB

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 3PSB

The total for journal entries is $93430

Explanation of Solution

Date (November)	Particular	PR	Dr.	Cr.
1^s^tNov	Cash	101	30,000
	Office Equipment	163	15,000
	To Common stock	307		54,000
	(Owner’s investment)


2ⁿ^dNov	Prepaid rent	131	4,500
	To Cash	101		4,500
	(Paid in advance for rent)

4^r^dNov	Office equipment	163	2500
	Office supplies	124	600
	To account payable	201		3100
	(Purchased office equipment and office supplies)

8^t^hNov	Cash	101	3400
	To Service revenue	403		3400
	(Received cash for provided service)

12^t^hNov	Account receivable	106	10200
	To service revenue	403		10200
	(Provide service on credit)

13^t^hNov	Account payable	201	3100
	Cash	101		3100
	(Paid cash that was due)

19^t^hNov	Prepaid Insurance	128	1800
	To cash	101		1800
	(Paid cash as premium for insurance)

22^t^hNov	Cash	101	5200
	Account receivable	106		5200
	(Received cash)

24^t^hNov	Account receivable	106	1,750
	Service revenue	403		1,750

28^t^hNov	Dividends	319	5300
	Cash	101		5300
	(to record the payment of cash as dividend)


29^t^hNov	Office supplies	163	249
	To Accounts payable	201		249
	(Purchase office supplies on credit)

30^t^hNov	Utilities expense	690	831
	To Cash	101		831
	(Paid cash for utilities)

	Total		93430	93430

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 3PSB

Balance of cash ledger is $23069, account receivable $6750, dividend $5300, office supplies $849, prepaid insurance is $1800, prepaid rent $4500, office equipment $17500, Account payable $249, Common stock $45000, service revenue $1350, and utilities is $831

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	30000		30,000
2ⁿ^dNov	G1		4500	25500
8^t^hNov	G1	3400		28900
13^t^hNov	G1		3100	25800
19^t^hNov	G1		1800	24000
22ⁿ^dNov	G1	5200		29200
28^t^hNov	G1		5300	23900
30^t^hNov	G1		831	23069

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
12^t^hNov	G1	10200		10200
22ⁿ^dNov	G1		5200	5000
24^t^hNov	G1	1750		6750

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hNov	G1	1800		1800

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	15000		15000
4^t^hNov	G1	2500		17500

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
4^r^dNov	G1	600		600
29^t^hNov	G1	249		849

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dNov	G1	4500		4500

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
4^t^hNov	G1		3100	3100
13^t^hNov	G1	3100		0
29^t^hNov	G1		249	249

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tNov	G1		45000	45000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
28^t^hNov	G1	5300		5300

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
8^t^hNov	G1		3400	3400
12^t^hNov	G1		10200	13600
24^t^hNov	G1		2100	1350

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hNov	G1	831		831

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 3PSB

Total of trail balance is $60599

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	23069
Account receivable	6750
Office supplies	849
Prepaid insurance	1,800
Prepaid rent	4500
Office equipment	17500
Account payable		249
Common Stock		45000
Dividend	5,300
Service revenue		15350
Utilities	831
Total	60599	60599

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Answer 2

Question

Chapter 2, Problem 3PSB

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 3PSB

The total for journal entries is $93430

Explanation of Solution

Date (November)	Particular	PR	Dr.	Cr.
1^s^tNov	Cash	101	30,000
	Office Equipment	163	15,000
	To Common stock	307		54,000
	(Owner’s investment)


2ⁿ^dNov	Prepaid rent	131	4,500
	To Cash	101		4,500
	(Paid in advance for rent)

4^r^dNov	Office equipment	163	2500
	Office supplies	124	600
	To account payable	201		3100
	(Purchased office equipment and office supplies)

8^t^hNov	Cash	101	3400
	To Service revenue	403		3400
	(Received cash for provided service)

12^t^hNov	Account receivable	106	10200
	To service revenue	403		10200
	(Provide service on credit)

13^t^hNov	Account payable	201	3100
	Cash	101		3100
	(Paid cash that was due)

19^t^hNov	Prepaid Insurance	128	1800
	To cash	101		1800
	(Paid cash as premium for insurance)

22^t^hNov	Cash	101	5200
	Account receivable	106		5200
	(Received cash)

24^t^hNov	Account receivable	106	1,750
	Service revenue	403		1,750

28^t^hNov	Dividends	319	5300
	Cash	101		5300
	(to record the payment of cash as dividend)


29^t^hNov	Office supplies	163	249
	To Accounts payable	201		249
	(Purchase office supplies on credit)

30^t^hNov	Utilities expense	690	831
	To Cash	101		831
	(Paid cash for utilities)

	Total		93430	93430

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 3PSB

Balance of cash ledger is $23069, account receivable $6750, dividend $5300, office supplies $849, prepaid insurance is $1800, prepaid rent $4500, office equipment $17500, Account payable $249, Common stock $45000, service revenue $1350, and utilities is $831

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	30000		30,000
2ⁿ^dNov	G1		4500	25500
8^t^hNov	G1	3400		28900
13^t^hNov	G1		3100	25800
19^t^hNov	G1		1800	24000
22ⁿ^dNov	G1	5200		29200
28^t^hNov	G1		5300	23900
30^t^hNov	G1		831	23069

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
12^t^hNov	G1	10200		10200
22ⁿ^dNov	G1		5200	5000
24^t^hNov	G1	1750		6750

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hNov	G1	1800		1800

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	15000		15000
4^t^hNov	G1	2500		17500

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
4^r^dNov	G1	600		600
29^t^hNov	G1	249		849

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dNov	G1	4500		4500

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
4^t^hNov	G1		3100	3100
13^t^hNov	G1	3100		0
29^t^hNov	G1		249	249

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tNov	G1		45000	45000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
28^t^hNov	G1	5300		5300

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
8^t^hNov	G1		3400	3400
12^t^hNov	G1		10200	13600
24^t^hNov	G1		2100	1350

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hNov	G1	831		831

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 3PSB

Total of trail balance is $60599

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	23069
Account receivable	6750
Office supplies	849
Prepaid insurance	1,800
Prepaid rent	4500
Office equipment	17500
Account payable		249
Common Stock		45000
Dividend	5,300
Service revenue		15350
Utilities	831
Total	60599	60599

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Answer 3

Question

Chapter 2, Problem 3PSB

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 3PSB

The total for journal entries is $93430

Explanation of Solution

Date (November)	Particular	PR	Dr.	Cr.
1^s^tNov	Cash	101	30,000
	Office Equipment	163	15,000
	To Common stock	307		54,000
	(Owner’s investment)


2ⁿ^dNov	Prepaid rent	131	4,500
	To Cash	101		4,500
	(Paid in advance for rent)

4^r^dNov	Office equipment	163	2500
	Office supplies	124	600
	To account payable	201		3100
	(Purchased office equipment and office supplies)

8^t^hNov	Cash	101	3400
	To Service revenue	403		3400
	(Received cash for provided service)

12^t^hNov	Account receivable	106	10200
	To service revenue	403		10200
	(Provide service on credit)

13^t^hNov	Account payable	201	3100
	Cash	101		3100
	(Paid cash that was due)

19^t^hNov	Prepaid Insurance	128	1800
	To cash	101		1800
	(Paid cash as premium for insurance)

22^t^hNov	Cash	101	5200
	Account receivable	106		5200
	(Received cash)

24^t^hNov	Account receivable	106	1,750
	Service revenue	403		1,750

28^t^hNov	Dividends	319	5300
	Cash	101		5300
	(to record the payment of cash as dividend)


29^t^hNov	Office supplies	163	249
	To Accounts payable	201		249
	(Purchase office supplies on credit)

30^t^hNov	Utilities expense	690	831
	To Cash	101		831
	(Paid cash for utilities)

	Total		93430	93430

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 3PSB

Balance of cash ledger is $23069, account receivable $6750, dividend $5300, office supplies $849, prepaid insurance is $1800, prepaid rent $4500, office equipment $17500, Account payable $249, Common stock $45000, service revenue $1350, and utilities is $831

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	30000		30,000
2ⁿ^dNov	G1		4500	25500
8^t^hNov	G1	3400		28900
13^t^hNov	G1		3100	25800
19^t^hNov	G1		1800	24000
22ⁿ^dNov	G1	5200		29200
28^t^hNov	G1		5300	23900
30^t^hNov	G1		831	23069

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
12^t^hNov	G1	10200		10200
22ⁿ^dNov	G1		5200	5000
24^t^hNov	G1	1750		6750

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hNov	G1	1800		1800

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	15000		15000
4^t^hNov	G1	2500		17500

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
4^r^dNov	G1	600		600
29^t^hNov	G1	249		849

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dNov	G1	4500		4500

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
4^t^hNov	G1		3100	3100
13^t^hNov	G1	3100		0
29^t^hNov	G1		249	249

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tNov	G1		45000	45000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
28^t^hNov	G1	5300		5300

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
8^t^hNov	G1		3400	3400
12^t^hNov	G1		10200	13600
24^t^hNov	G1		2100	1350

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hNov	G1	831		831

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 3PSB

Total of trail balance is $60599

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	23069
Account receivable	6750
Office supplies	849
Prepaid insurance	1,800
Prepaid rent	4500
Office equipment	17500
Account payable		249
Common Stock		45000
Dividend	5,300
Service revenue		15350
Utilities	831
Total	60599	60599

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Answer 4

Question

Chapter 2, Problem 3PSB

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 3PSB

The total for journal entries is $93430

Explanation of Solution

Date (November)	Particular	PR	Dr.	Cr.
1^s^tNov	Cash	101	30,000
	Office Equipment	163	15,000
	To Common stock	307		54,000
	(Owner’s investment)


2ⁿ^dNov	Prepaid rent	131	4,500
	To Cash	101		4,500
	(Paid in advance for rent)

4^r^dNov	Office equipment	163	2500
	Office supplies	124	600
	To account payable	201		3100
	(Purchased office equipment and office supplies)

8^t^hNov	Cash	101	3400
	To Service revenue	403		3400
	(Received cash for provided service)

12^t^hNov	Account receivable	106	10200
	To service revenue	403		10200
	(Provide service on credit)

13^t^hNov	Account payable	201	3100
	Cash	101		3100
	(Paid cash that was due)

19^t^hNov	Prepaid Insurance	128	1800
	To cash	101		1800
	(Paid cash as premium for insurance)

22^t^hNov	Cash	101	5200
	Account receivable	106		5200
	(Received cash)

24^t^hNov	Account receivable	106	1,750
	Service revenue	403		1,750

28^t^hNov	Dividends	319	5300
	Cash	101		5300
	(to record the payment of cash as dividend)


29^t^hNov	Office supplies	163	249
	To Accounts payable	201		249
	(Purchase office supplies on credit)

30^t^hNov	Utilities expense	690	831
	To Cash	101		831
	(Paid cash for utilities)

	Total		93430	93430

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 3PSB

Balance of cash ledger is $23069, account receivable $6750, dividend $5300, office supplies $849, prepaid insurance is $1800, prepaid rent $4500, office equipment $17500, Account payable $249, Common stock $45000, service revenue $1350, and utilities is $831

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	30000		30,000
2ⁿ^dNov	G1		4500	25500
8^t^hNov	G1	3400		28900
13^t^hNov	G1		3100	25800
19^t^hNov	G1		1800	24000
22ⁿ^dNov	G1	5200		29200
28^t^hNov	G1		5300	23900
30^t^hNov	G1		831	23069

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
12^t^hNov	G1	10200		10200
22ⁿ^dNov	G1		5200	5000
24^t^hNov	G1	1750		6750

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hNov	G1	1800		1800

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	15000		15000
4^t^hNov	G1	2500		17500

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
4^r^dNov	G1	600		600
29^t^hNov	G1	249		849

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dNov	G1	4500		4500

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
4^t^hNov	G1		3100	3100
13^t^hNov	G1	3100		0
29^t^hNov	G1		249	249

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tNov	G1		45000	45000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
28^t^hNov	G1	5300		5300

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
8^t^hNov	G1		3400	3400
12^t^hNov	G1		10200	13600
24^t^hNov	G1		2100	1350

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hNov	G1	831		831

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 3PSB

Total of trail balance is $60599

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	23069
Account receivable	6750
Office supplies	849
Prepaid insurance	1,800
Prepaid rent	4500
Office equipment	17500
Account payable		249
Common Stock		45000
Dividend	5,300
Service revenue		15350
Utilities	831
Total	60599	60599

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Answer 5

Chapter 2, Problem 3PSB

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 3PSB

The total for journal entries is $93430

Explanation of Solution

Date (November)	Particular	PR	Dr.	Cr.
1^s^tNov	Cash	101	30,000
	Office Equipment	163	15,000
	To Common stock	307		54,000
	(Owner’s investment)


2ⁿ^dNov	Prepaid rent	131	4,500
	To Cash	101		4,500
	(Paid in advance for rent)

4^r^dNov	Office equipment	163	2500
	Office supplies	124	600
	To account payable	201		3100
	(Purchased office equipment and office supplies)

8^t^hNov	Cash	101	3400
	To Service revenue	403		3400
	(Received cash for provided service)

12^t^hNov	Account receivable	106	10200
	To service revenue	403		10200
	(Provide service on credit)

13^t^hNov	Account payable	201	3100
	Cash	101		3100
	(Paid cash that was due)

19^t^hNov	Prepaid Insurance	128	1800
	To cash	101		1800
	(Paid cash as premium for insurance)

22^t^hNov	Cash	101	5200
	Account receivable	106		5200
	(Received cash)

24^t^hNov	Account receivable	106	1,750
	Service revenue	403		1,750

28^t^hNov	Dividends	319	5300
	Cash	101		5300
	(to record the payment of cash as dividend)


29^t^hNov	Office supplies	163	249
	To Accounts payable	201		249
	(Purchase office supplies on credit)

30^t^hNov	Utilities expense	690	831
	To Cash	101		831
	(Paid cash for utilities)

	Total		93430	93430

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 3PSB

Balance of cash ledger is $23069, account receivable $6750, dividend $5300, office supplies $849, prepaid insurance is $1800, prepaid rent $4500, office equipment $17500, Account payable $249, Common stock $45000, service revenue $1350, and utilities is $831

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	30000		30,000
2ⁿ^dNov	G1		4500	25500
8^t^hNov	G1	3400		28900
13^t^hNov	G1		3100	25800
19^t^hNov	G1		1800	24000
22ⁿ^dNov	G1	5200		29200
28^t^hNov	G1		5300	23900
30^t^hNov	G1		831	23069

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
12^t^hNov	G1	10200		10200
22ⁿ^dNov	G1		5200	5000
24^t^hNov	G1	1750		6750

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hNov	G1	1800		1800

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	15000		15000
4^t^hNov	G1	2500		17500

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
4^r^dNov	G1	600		600
29^t^hNov	G1	249		849

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dNov	G1	4500		4500

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
4^t^hNov	G1		3100	3100
13^t^hNov	G1	3100		0
29^t^hNov	G1		249	249

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tNov	G1		45000	45000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
28^t^hNov	G1	5300		5300

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
8^t^hNov	G1		3400	3400
12^t^hNov	G1		10200	13600
24^t^hNov	G1		2100	1350

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hNov	G1	831		831

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 3PSB

Total of trail balance is $60599

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	23069
Account receivable	6750
Office supplies	849
Prepaid insurance	1,800
Prepaid rent	4500
Office equipment	17500
Account payable		249
Common Stock		45000
Dividend	5,300
Service revenue		15350
Utilities	831
Total	60599	60599

Answer 6

Chapter 2, Problem 3PSB

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 3PSB

The total for journal entries is $93430

Explanation of Solution

Date (November)	Particular	PR	Dr.	Cr.
1^s^tNov	Cash	101	30,000
	Office Equipment	163	15,000
	To Common stock	307		54,000
	(Owner’s investment)


2ⁿ^dNov	Prepaid rent	131	4,500
	To Cash	101		4,500
	(Paid in advance for rent)

4^r^dNov	Office equipment	163	2500
	Office supplies	124	600
	To account payable	201		3100
	(Purchased office equipment and office supplies)

8^t^hNov	Cash	101	3400
	To Service revenue	403		3400
	(Received cash for provided service)

12^t^hNov	Account receivable	106	10200
	To service revenue	403		10200
	(Provide service on credit)

13^t^hNov	Account payable	201	3100
	Cash	101		3100
	(Paid cash that was due)

19^t^hNov	Prepaid Insurance	128	1800
	To cash	101		1800
	(Paid cash as premium for insurance)

22^t^hNov	Cash	101	5200
	Account receivable	106		5200
	(Received cash)

24^t^hNov	Account receivable	106	1,750
	Service revenue	403		1,750

28^t^hNov	Dividends	319	5300
	Cash	101		5300
	(to record the payment of cash as dividend)


29^t^hNov	Office supplies	163	249
	To Accounts payable	201		249
	(Purchase office supplies on credit)

30^t^hNov	Utilities expense	690	831
	To Cash	101		831
	(Paid cash for utilities)

	Total		93430	93430

Answer 7

Chapter 2, Problem 3PSB

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 3PSB

The total for journal entries is $93430

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Date (November)	Particular	PR	Dr.	Cr.
1^s^tNov	Cash	101	30,000
	Office Equipment	163	15,000
	To Common stock	307		54,000
	(Owner’s investment)


2ⁿ^dNov	Prepaid rent	131	4,500
	To Cash	101		4,500
	(Paid in advance for rent)

4^r^dNov	Office equipment	163	2500
	Office supplies	124	600
	To account payable	201		3100
	(Purchased office equipment and office supplies)

8^t^hNov	Cash	101	3400
	To Service revenue	403		3400
	(Received cash for provided service)

12^t^hNov	Account receivable	106	10200
	To service revenue	403		10200
	(Provide service on credit)

13^t^hNov	Account payable	201	3100
	Cash	101		3100
	(Paid cash that was due)

19^t^hNov	Prepaid Insurance	128	1800
	To cash	101		1800
	(Paid cash as premium for insurance)

22^t^hNov	Cash	101	5200
	Account receivable	106		5200
	(Received cash)

24^t^hNov	Account receivable	106	1,750
	Service revenue	403		1,750

28^t^hNov	Dividends	319	5300
	Cash	101		5300
	(to record the payment of cash as dividend)


29^t^hNov	Office supplies	163	249
	To Accounts payable	201		249
	(Purchase office supplies on credit)

30^t^hNov	Utilities expense	690	831
	To Cash	101		831
	(Paid cash for utilities)

	Total		93430	93430

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 3PSB

Balance of cash ledger is $23069, account receivable $6750, dividend $5300, office supplies $849, prepaid insurance is $1800, prepaid rent $4500, office equipment $17500, Account payable $249, Common stock $45000, service revenue $1350, and utilities is $831

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	30000		30,000
2ⁿ^dNov	G1		4500	25500
8^t^hNov	G1	3400		28900
13^t^hNov	G1		3100	25800
19^t^hNov	G1		1800	24000
22ⁿ^dNov	G1	5200		29200
28^t^hNov	G1		5300	23900
30^t^hNov	G1		831	23069

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
12^t^hNov	G1	10200		10200
22ⁿ^dNov	G1		5200	5000
24^t^hNov	G1	1750		6750

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hNov	G1	1800		1800

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	15000		15000
4^t^hNov	G1	2500		17500

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
4^r^dNov	G1	600		600
29^t^hNov	G1	249		849

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dNov	G1	4500		4500

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
4^t^hNov	G1		3100	3100
13^t^hNov	G1	3100		0
29^t^hNov	G1		249	249

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tNov	G1		45000	45000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
28^t^hNov	G1	5300		5300

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
8^t^hNov	G1		3400	3400
12^t^hNov	G1		10200	13600
24^t^hNov	G1		2100	1350

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hNov	G1	831		831

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 3PSB

Balance of cash ledger is $23069, account receivable $6750, dividend $5300, office supplies $849, prepaid insurance is $1800, prepaid rent $4500, office equipment $17500, Account payable $249, Common stock $45000, service revenue $1350, and utilities is $831

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^tNov	G1	30000		30,000
2ⁿ^dNov	G1		4500	25500
8^t^hNov	G1	3400		28900
13^t^hNov	G1		3100	25800
19^t^hNov	G1		1800	24000
22ⁿ^dNov	G1	5200		29200
28^t^hNov	G1		5300	23900
30^t^hNov	G1		831	23069

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
12^t^hNov	G1	10200		10200
22ⁿ^dNov	G1		5200	5000
24^t^hNov	G1	1750		6750

Prepaid insurance				Account no. 128
Date	PR	Debit	Credit	Balance
19^t^hNov	G1	1800		1800

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
1^s^tNov	G1	15000		15000
4^t^hNov	G1	2500		17500

Office supplies				Account no. 124
Date	PR	Debit	Credit	Balance
4^r^dNov	G1	600		600
29^t^hNov	G1	249		849

Prepaid rent				Account no. 131
Date	PR	Debit	Credit	Balance
2ⁿ^dNov	G1	4500		4500

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
4^t^hNov	G1		3100	3100
13^t^hNov	G1	3100		0
29^t^hNov	G1		249	249

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
1^s^tNov	G1		45000	45000

Dividend				Account no. 319
Date	PR	Debit	Credit	Balance
28^t^hNov	G1	5300		5300

Service Revenue				Account no. 403
Date	PR	Debit	Credit	Balance
8^t^hNov	G1		3400	3400
12^t^hNov	G1		10200	13600
24^t^hNov	G1		2100	1350

Utilities				Account no. 690
Date	PR	Debit	Credit	Balance
30^t^hNov	G1	831		831

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 3PSB

Total of trail balance is $60599

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	23069
Account receivable	6750
Office supplies	849
Prepaid insurance	1,800
Prepaid rent	4500
Office equipment	17500
Account payable		249
Common Stock		45000
Dividend	5,300
Service revenue		15350
Utilities	831
Total	60599	60599

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 3PSB

Total of trail balance is $60599

Answer 23

3.

Expert Solution

Answer 24

3.

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	23069
Account receivable	6750
Office supplies	849
Prepaid insurance	1,800
Prepaid rent	4500
Office equipment	17500
Account payable		249
Common Stock		45000
Dividend	5,300
Service revenue		15350
Utilities	831
Total	60599	60599

Answer 27

Ch. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ Ch. 2 - Should a transaction be recorded first in a...Ch. 2 - Prob. 7DQ Ch. 2 - Why does the recordkeeper prepare a trial balance?Ch. 2 - Prob. 9DQ Ch. 2 - Prob. 10DQ

Solution Summary: The author introduces Cash Flow Analysis, a technique used by the company to know the overall worth of its subsidiary or branches.

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