Loose Leaf for Financial Accounting: Information for Decisions
Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 2, Problem 5GLP

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
Check Mark

Explanation of Solution

    Date (June)ParticularPRDr.Cr.
    a.Cash101100,000
    Office Equipment1635,000
    Drafting equipment16460,000
    To Common stock165,000
    (Owner’s investment)
    b.Land17249,000
    To cash1016300
    To note payable29042,700
    (Land purchase for cash and note payable )
    c. Portable building 17055000
    To cash10155000
    (Portable building purchase for cash)
    d.Insurance paid1083000
    To cash1013000
    (Cash paid for insurance)
    e.Cash1016200
    Service revenue4026200
    (cash received against service render)
    f. Drafting Equipment16420000
    To cash1019500
    To note payable29010500
    g. Account receivable10614000
    Service revenue40214000
    (service render on credit)
    h.Office equipment1631150
    To purchase2011150
    (Purchase of office equipment on credit)
    i.Account receivable10622000
    Service revenue40222000
    (Provide service on credit)
    j. Rent6021333
    To account payable2011333
    (rent to be paid in 30 days)
    k.Cash1017000
    To Account receivable 1067000
    (Received cash)
    l.Wages6011200
    To cash1011200
    (Wages paid to drafting Assistant)
    m.Office equipment2011150
    To cash1011150
    n.Repair equipment604925
    To cash101925
    o.Dividends 3199480
    Cash1019480
    (to record the payment of cash as dividend)
    p.Drafting assistant6011200
    Cash 1011200
    q.Advertisement6032500
    Cash1012500
    (Paid cash for advertise)

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
Check Mark

Answer to Problem 5GLP

Balance of cash ledger is $22945, account receivable $29000, prepaid insurance is $3000, land 49000, Drafting equipment 80000, building 55000,note payable 53200,advertisement 2500, repair expense 925.

Explanation of Solution

    Cash Account No.101
    DatePRDebitCreditBalance
    a.G1100000100000
    b.G1630093700
    c.G15500038700
    d.G1300035700
    e.G1620041900
    f.G1950032400
    k.G1700039400
    l.G1120038200
    m.115037050
    n.92536125
    o.948026645
    p.120025445
    q.250022945
    Account receivableAccount no.106
    DatePRDebitCreditBalance
    g.G11400014000
    i.G12200036000
    k.G1700029000
    Prepaid InsuranceAccount no. 128
    DatePRDebitCreditBalance
    d.G130003000
    Office equipmentAccount no. 163
    DatePRDebitCreditBalance
    a.G15000
    b.11506150
    Drafting equipmentAccount no. 163
    DatePRDebitCreditBalance
    a.G160000
    f.G12000080000
    BuildingAccount no. 170
    DatePRDebitCreditBalance
    c.G15500055000
    Account payableAccount no. 201
    DatePRDebitCreditBalance
    m.G111501150
    h.G111500
    j.G113331333
    Common stockAccount no. 307
    DatePRDebitCreditBalance
    a.G1165000
    165000
    Engineering fees earnedAccount no. 402
    DatePRDebitCreditBalance
    e.G162006200
    g.1400020200
    i.2200042200
    Rental expenseAccount no. 602
    DatePRDebitCreditBalance
    j.G113331333
    RepairAccount no. 604
    DatePRDebitCreditBalance
    n. G1925925
    LandAccount no. 172
    DatePRDebitCreditBalance
    b.G14900049000
    Note payableAccount no. 250
    DatePRDebitCreditBalance
    b.G14270042700
    F1050053200
    DividendsAccount no. 319
    DatePRDebitCreditBalance
    o.G19480
    Wages ExpenseAccount no. 601
    DatePRDebitCreditBalance
    l.G11200
    p.G11200
    Advertisement ExpenseAccount no. 601
    DatePRDebitCreditBalance
    qG125002500

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
Check Mark

Answer to Problem 5GLP

Total of trail balance is $261733

Explanation of Solution

    HTrail balance30thNov.
    ParticularDr.Cr.
    Cash22954
    Account receivable29000
    Prepaid insurance3000
    Office equipment6150
    Drafting equipment80000
    Building55000
    Land49000
    Account payable133
    Notes payable5300
    Common stock165000
    Engineering fees42200
    Dividend9480
    Wages2400
    Equipment rental1333
    Advertisement2500
    Repair925
    Total261733261733

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Chapter 2 Solutions

Loose Leaf for Financial Accounting: Information for Decisions

Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Review the Apple balance sheet in Appendix A....Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Identify the items from the following list that...Ch. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - In a recent year’s financial statements, Home...Ch. 2 - Prob. 13QSCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Enter the number for the item that best completes...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prepare general journal entries for the following...Ch. 2 - Prob. 12ECh. 2 - Assume the following Taccounts reflect Belle Co.’s...Ch. 2 - Prob. 14ECh. 2 - A corporation had the following assets and...Ch. 2 - Prob. 16ECh. 2 - Use the information in Exercise 216 to prepare an...Ch. 2 - Prob. 18ECh. 2 - Compute the missing amount for each of the...Ch. 2 - Prob. 20ECh. 2 - You are told the column totals in a trial balance...Ch. 2 - a. Calculate the debt ratio and the return on...Ch. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 6PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Nuncio Consulting complete the following...Ch. 2 - Prob. 5PSBCh. 2 - Prob. 6PSBCh. 2 - Prob. 2SPCh. 2 - Prob. 1GLPCh. 2 - Prob. 2GLPCh. 2 - Prob. 3GLPCh. 2 - Prob. 4GLPCh. 2 - Prob. 5GLPCh. 2 - Prob. 6GLPCh. 2 - Prob. 7GLPCh. 2 - Using transactions from the following assignments,...Ch. 2 - Prob. 1FSACh. 2 - Prob. 2FSACh. 2 - Prob. 3FSACh. 2 - Assume that you are a cashier and your manager...Ch. 2 - Prob. 2BTNCh. 2 - Access EDGAR online (SEC.gov) and locate the 2016...Ch. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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