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 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

Explanation of Solution

Date (June)	Particular	PR	Dr.	Cr.
a.	Cash	101	100,000
	Office Equipment	163	5,000
	Drafting equipment	164	60,000
	To Common stock			165,000
	(Owner’s investment)

b.	Land	172	49,000
	To cash	101		6300
	To note payable	290		42,700
	(Land purchase for cash and note payable )

c.	Portable building	170	55000
	To cash	101		55000
	(Portable building purchase for cash)

d.	Insurance paid	108	3000
	To cash	101		3000
	(Cash paid for insurance)

e.	Cash	101	6200
	Service revenue	402		6200
	(cash received against service render)

f.	Drafting Equipment	164	20000
	To cash	101		9500
	To note payable	290		10500


g.	Account receivable	106	14000
	Service revenue	402		14000
	(service render on credit)

h.	Office equipment	163	1150
	To purchase	201		1150
	(Purchase of office equipment on credit)

i.	Account receivable	106	22000
	Service revenue	402		22000
	(Provide service on credit)

j.	Rent	602	1333
	To account payable	201		1333
	(rent to be paid in 30 days)

k.	Cash	101	7000
	To Account receivable	106		7000
	(Received cash)

l.	Wages	601	1200
	To cash	101		1200
	(Wages paid to drafting Assistant)

m.	Office equipment	201	1150
	To cash	101		1150

n.	Repair equipment	604	925
	To cash	101		925


o.	Dividends	319	9480
	Cash	101		9480
	(to record the payment of cash as dividend)

p.	Drafting assistant	601	1200
	Cash	101		1200


q.	Advertisement	603	2500
	Cash	101		2500
	(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

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
Date	PR	Debit	Credit	Balance
a.	G1	100000		100000
b.	G1		6300	93700
c.	G1		55000	38700
d.	G1		3000	35700
e.	G1	6200		41900
f.	G1		9500	32400
k.	G1	7000		39400
l.	G1		1200	38200
m.			1150	37050
n.			925	36125
o.			9480	26645
p.			1200	25445
q.			2500	22945

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
g.	G1	14000		14000
i.	G1	22000		36000
k.	G1		7000	29000

Prepaid Insurance				Account no. 128
Date	PR	Debit	Credit	Balance
d.	G1		3000	3000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	5000
b.	1150			6150

Drafting equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	60000
f.	G1	20000		80000

Building				Account no. 170
Date	PR	Debit	Credit	Balance
c.	G1	55000		55000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
m.	G1	1150		1150
h.	G1		1150	0
j.	G1		1333	1333

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
a.	G1			165000
				165000

Engineering fees earned				Account no. 402
Date	PR	Debit	Credit	Balance
e.	G1		6200	6200
g.			14000	20200
i.			22000	42200

Rental expense				Account no. 602
Date	PR	Debit	Credit	Balance
j.	G1	1333		1333

Repair				Account no. 604
Date	PR	Debit	Credit	Balance
n.	G1	925		925

Land				Account no. 172
Date	PR	Debit	Credit	Balance
b.	G1	49000		49000

Note payable				Account no. 250
Date	PR	Debit	Credit	Balance
b.	G1		42700	42700
F			10500	53200

Dividends				Account no. 319
Date	PR	Debit	Credit	Balance
o.	G1	9480

Wages Expense				Account no. 601
Date	PR	Debit	Credit	Balance
l.	G1	1200
p.	G1	1200

Advertisement Expense				Account no. 601
Date	PR	Debit	Credit	Balance
q	G1	2500		2500

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 5GLP

Total of trail balance is $261733

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	22954
Account receivable	29000
Prepaid insurance	3000
Office equipment	6150
Drafting equipment	80000
Building	55000
Land	49000
Account payable		133
Notes payable		5300
Common stock		165000
Engineering fees		42200
Dividend	9480
Wages	2400
Equipment rental	1333
Advertisement	2500
Repair	925
Total	261733	261733

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Students have asked these similar questions

In the month of September, a department had 9,500 units in beginning work in process that were 60% complete. During September, 28,500 units were transferred into production from another department. At the end of September, there were 5,500 units in ending work in process that were 50% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. A. The equivalent units of production for materials in September were __. B. The equivalent units of production for conversion costs for September were __.

Answer ?

In the month of September, a department had 9,500 units in beginning work in process that were 60% complete. During September, 28,500 units were transferred into production from another department. At the end of September, there were 5,500 units in ending work in process that were 50% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. A. The equivalent units of production for materials in September were . B. The equivalent units of production for conversion costs for September were . Need answer

Answer 2

Question

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

Explanation of Solution

Date (June)	Particular	PR	Dr.	Cr.
a.	Cash	101	100,000
	Office Equipment	163	5,000
	Drafting equipment	164	60,000
	To Common stock			165,000
	(Owner’s investment)

b.	Land	172	49,000
	To cash	101		6300
	To note payable	290		42,700
	(Land purchase for cash and note payable )

c.	Portable building	170	55000
	To cash	101		55000
	(Portable building purchase for cash)

d.	Insurance paid	108	3000
	To cash	101		3000
	(Cash paid for insurance)

e.	Cash	101	6200
	Service revenue	402		6200
	(cash received against service render)

f.	Drafting Equipment	164	20000
	To cash	101		9500
	To note payable	290		10500


g.	Account receivable	106	14000
	Service revenue	402		14000
	(service render on credit)

h.	Office equipment	163	1150
	To purchase	201		1150
	(Purchase of office equipment on credit)

i.	Account receivable	106	22000
	Service revenue	402		22000
	(Provide service on credit)

j.	Rent	602	1333
	To account payable	201		1333
	(rent to be paid in 30 days)

k.	Cash	101	7000
	To Account receivable	106		7000
	(Received cash)

l.	Wages	601	1200
	To cash	101		1200
	(Wages paid to drafting Assistant)

m.	Office equipment	201	1150
	To cash	101		1150

n.	Repair equipment	604	925
	To cash	101		925


o.	Dividends	319	9480
	Cash	101		9480
	(to record the payment of cash as dividend)

p.	Drafting assistant	601	1200
	Cash	101		1200


q.	Advertisement	603	2500
	Cash	101		2500
	(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

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
Date	PR	Debit	Credit	Balance
a.	G1	100000		100000
b.	G1		6300	93700
c.	G1		55000	38700
d.	G1		3000	35700
e.	G1	6200		41900
f.	G1		9500	32400
k.	G1	7000		39400
l.	G1		1200	38200
m.			1150	37050
n.			925	36125
o.			9480	26645
p.			1200	25445
q.			2500	22945

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
g.	G1	14000		14000
i.	G1	22000		36000
k.	G1		7000	29000

Prepaid Insurance				Account no. 128
Date	PR	Debit	Credit	Balance
d.	G1		3000	3000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	5000
b.	1150			6150

Drafting equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	60000
f.	G1	20000		80000

Building				Account no. 170
Date	PR	Debit	Credit	Balance
c.	G1	55000		55000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
m.	G1	1150		1150
h.	G1		1150	0
j.	G1		1333	1333

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
a.	G1			165000
				165000

Engineering fees earned				Account no. 402
Date	PR	Debit	Credit	Balance
e.	G1		6200	6200
g.			14000	20200
i.			22000	42200

Rental expense				Account no. 602
Date	PR	Debit	Credit	Balance
j.	G1	1333		1333

Repair				Account no. 604
Date	PR	Debit	Credit	Balance
n.	G1	925		925

Land				Account no. 172
Date	PR	Debit	Credit	Balance
b.	G1	49000		49000

Note payable				Account no. 250
Date	PR	Debit	Credit	Balance
b.	G1		42700	42700
F			10500	53200

Dividends				Account no. 319
Date	PR	Debit	Credit	Balance
o.	G1	9480

Wages Expense				Account no. 601
Date	PR	Debit	Credit	Balance
l.	G1	1200
p.	G1	1200

Advertisement Expense				Account no. 601
Date	PR	Debit	Credit	Balance
q	G1	2500		2500

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 5GLP

Total of trail balance is $261733

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	22954
Account receivable	29000
Prepaid insurance	3000
Office equipment	6150
Drafting equipment	80000
Building	55000
Land	49000
Account payable		133
Notes payable		5300
Common stock		165000
Engineering fees		42200
Dividend	9480
Wages	2400
Equipment rental	1333
Advertisement	2500
Repair	925
Total	261733	261733

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Answer 3

Question

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

Explanation of Solution

Date (June)	Particular	PR	Dr.	Cr.
a.	Cash	101	100,000
	Office Equipment	163	5,000
	Drafting equipment	164	60,000
	To Common stock			165,000
	(Owner’s investment)

b.	Land	172	49,000
	To cash	101		6300
	To note payable	290		42,700
	(Land purchase for cash and note payable )

c.	Portable building	170	55000
	To cash	101		55000
	(Portable building purchase for cash)

d.	Insurance paid	108	3000
	To cash	101		3000
	(Cash paid for insurance)

e.	Cash	101	6200
	Service revenue	402		6200
	(cash received against service render)

f.	Drafting Equipment	164	20000
	To cash	101		9500
	To note payable	290		10500


g.	Account receivable	106	14000
	Service revenue	402		14000
	(service render on credit)

h.	Office equipment	163	1150
	To purchase	201		1150
	(Purchase of office equipment on credit)

i.	Account receivable	106	22000
	Service revenue	402		22000
	(Provide service on credit)

j.	Rent	602	1333
	To account payable	201		1333
	(rent to be paid in 30 days)

k.	Cash	101	7000
	To Account receivable	106		7000
	(Received cash)

l.	Wages	601	1200
	To cash	101		1200
	(Wages paid to drafting Assistant)

m.	Office equipment	201	1150
	To cash	101		1150

n.	Repair equipment	604	925
	To cash	101		925


o.	Dividends	319	9480
	Cash	101		9480
	(to record the payment of cash as dividend)

p.	Drafting assistant	601	1200
	Cash	101		1200


q.	Advertisement	603	2500
	Cash	101		2500
	(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

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
Date	PR	Debit	Credit	Balance
a.	G1	100000		100000
b.	G1		6300	93700
c.	G1		55000	38700
d.	G1		3000	35700
e.	G1	6200		41900
f.	G1		9500	32400
k.	G1	7000		39400
l.	G1		1200	38200
m.			1150	37050
n.			925	36125
o.			9480	26645
p.			1200	25445
q.			2500	22945

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
g.	G1	14000		14000
i.	G1	22000		36000
k.	G1		7000	29000

Prepaid Insurance				Account no. 128
Date	PR	Debit	Credit	Balance
d.	G1		3000	3000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	5000
b.	1150			6150

Drafting equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	60000
f.	G1	20000		80000

Building				Account no. 170
Date	PR	Debit	Credit	Balance
c.	G1	55000		55000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
m.	G1	1150		1150
h.	G1		1150	0
j.	G1		1333	1333

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
a.	G1			165000
				165000

Engineering fees earned				Account no. 402
Date	PR	Debit	Credit	Balance
e.	G1		6200	6200
g.			14000	20200
i.			22000	42200

Rental expense				Account no. 602
Date	PR	Debit	Credit	Balance
j.	G1	1333		1333

Repair				Account no. 604
Date	PR	Debit	Credit	Balance
n.	G1	925		925

Land				Account no. 172
Date	PR	Debit	Credit	Balance
b.	G1	49000		49000

Note payable				Account no. 250
Date	PR	Debit	Credit	Balance
b.	G1		42700	42700
F			10500	53200

Dividends				Account no. 319
Date	PR	Debit	Credit	Balance
o.	G1	9480

Wages Expense				Account no. 601
Date	PR	Debit	Credit	Balance
l.	G1	1200
p.	G1	1200

Advertisement Expense				Account no. 601
Date	PR	Debit	Credit	Balance
q	G1	2500		2500

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 5GLP

Total of trail balance is $261733

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	22954
Account receivable	29000
Prepaid insurance	3000
Office equipment	6150
Drafting equipment	80000
Building	55000
Land	49000
Account payable		133
Notes payable		5300
Common stock		165000
Engineering fees		42200
Dividend	9480
Wages	2400
Equipment rental	1333
Advertisement	2500
Repair	925
Total	261733	261733

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Answer 4

Question

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

Explanation of Solution

Date (June)	Particular	PR	Dr.	Cr.
a.	Cash	101	100,000
	Office Equipment	163	5,000
	Drafting equipment	164	60,000
	To Common stock			165,000
	(Owner’s investment)

b.	Land	172	49,000
	To cash	101		6300
	To note payable	290		42,700
	(Land purchase for cash and note payable )

c.	Portable building	170	55000
	To cash	101		55000
	(Portable building purchase for cash)

d.	Insurance paid	108	3000
	To cash	101		3000
	(Cash paid for insurance)

e.	Cash	101	6200
	Service revenue	402		6200
	(cash received against service render)

f.	Drafting Equipment	164	20000
	To cash	101		9500
	To note payable	290		10500


g.	Account receivable	106	14000
	Service revenue	402		14000
	(service render on credit)

h.	Office equipment	163	1150
	To purchase	201		1150
	(Purchase of office equipment on credit)

i.	Account receivable	106	22000
	Service revenue	402		22000
	(Provide service on credit)

j.	Rent	602	1333
	To account payable	201		1333
	(rent to be paid in 30 days)

k.	Cash	101	7000
	To Account receivable	106		7000
	(Received cash)

l.	Wages	601	1200
	To cash	101		1200
	(Wages paid to drafting Assistant)

m.	Office equipment	201	1150
	To cash	101		1150

n.	Repair equipment	604	925
	To cash	101		925


o.	Dividends	319	9480
	Cash	101		9480
	(to record the payment of cash as dividend)

p.	Drafting assistant	601	1200
	Cash	101		1200


q.	Advertisement	603	2500
	Cash	101		2500
	(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

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
Date	PR	Debit	Credit	Balance
a.	G1	100000		100000
b.	G1		6300	93700
c.	G1		55000	38700
d.	G1		3000	35700
e.	G1	6200		41900
f.	G1		9500	32400
k.	G1	7000		39400
l.	G1		1200	38200
m.			1150	37050
n.			925	36125
o.			9480	26645
p.			1200	25445
q.			2500	22945

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
g.	G1	14000		14000
i.	G1	22000		36000
k.	G1		7000	29000

Prepaid Insurance				Account no. 128
Date	PR	Debit	Credit	Balance
d.	G1		3000	3000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	5000
b.	1150			6150

Drafting equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	60000
f.	G1	20000		80000

Building				Account no. 170
Date	PR	Debit	Credit	Balance
c.	G1	55000		55000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
m.	G1	1150		1150
h.	G1		1150	0
j.	G1		1333	1333

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
a.	G1			165000
				165000

Engineering fees earned				Account no. 402
Date	PR	Debit	Credit	Balance
e.	G1		6200	6200
g.			14000	20200
i.			22000	42200

Rental expense				Account no. 602
Date	PR	Debit	Credit	Balance
j.	G1	1333		1333

Repair				Account no. 604
Date	PR	Debit	Credit	Balance
n.	G1	925		925

Land				Account no. 172
Date	PR	Debit	Credit	Balance
b.	G1	49000		49000

Note payable				Account no. 250
Date	PR	Debit	Credit	Balance
b.	G1		42700	42700
F			10500	53200

Dividends				Account no. 319
Date	PR	Debit	Credit	Balance
o.	G1	9480

Wages Expense				Account no. 601
Date	PR	Debit	Credit	Balance
l.	G1	1200
p.	G1	1200

Advertisement Expense				Account no. 601
Date	PR	Debit	Credit	Balance
q	G1	2500		2500

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 5GLP

Total of trail balance is $261733

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	22954
Account receivable	29000
Prepaid insurance	3000
Office equipment	6150
Drafting equipment	80000
Building	55000
Land	49000
Account payable		133
Notes payable		5300
Common stock		165000
Engineering fees		42200
Dividend	9480
Wages	2400
Equipment rental	1333
Advertisement	2500
Repair	925
Total	261733	261733

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Answer 5

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

Explanation of Solution

Date (June)	Particular	PR	Dr.	Cr.
a.	Cash	101	100,000
	Office Equipment	163	5,000
	Drafting equipment	164	60,000
	To Common stock			165,000
	(Owner’s investment)

b.	Land	172	49,000
	To cash	101		6300
	To note payable	290		42,700
	(Land purchase for cash and note payable )

c.	Portable building	170	55000
	To cash	101		55000
	(Portable building purchase for cash)

d.	Insurance paid	108	3000
	To cash	101		3000
	(Cash paid for insurance)

e.	Cash	101	6200
	Service revenue	402		6200
	(cash received against service render)

f.	Drafting Equipment	164	20000
	To cash	101		9500
	To note payable	290		10500


g.	Account receivable	106	14000
	Service revenue	402		14000
	(service render on credit)

h.	Office equipment	163	1150
	To purchase	201		1150
	(Purchase of office equipment on credit)

i.	Account receivable	106	22000
	Service revenue	402		22000
	(Provide service on credit)

j.	Rent	602	1333
	To account payable	201		1333
	(rent to be paid in 30 days)

k.	Cash	101	7000
	To Account receivable	106		7000
	(Received cash)

l.	Wages	601	1200
	To cash	101		1200
	(Wages paid to drafting Assistant)

m.	Office equipment	201	1150
	To cash	101		1150

n.	Repair equipment	604	925
	To cash	101		925


o.	Dividends	319	9480
	Cash	101		9480
	(to record the payment of cash as dividend)

p.	Drafting assistant	601	1200
	Cash	101		1200


q.	Advertisement	603	2500
	Cash	101		2500
	(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

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
Date	PR	Debit	Credit	Balance
a.	G1	100000		100000
b.	G1		6300	93700
c.	G1		55000	38700
d.	G1		3000	35700
e.	G1	6200		41900
f.	G1		9500	32400
k.	G1	7000		39400
l.	G1		1200	38200
m.			1150	37050
n.			925	36125
o.			9480	26645
p.			1200	25445
q.			2500	22945

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
g.	G1	14000		14000
i.	G1	22000		36000
k.	G1		7000	29000

Prepaid Insurance				Account no. 128
Date	PR	Debit	Credit	Balance
d.	G1		3000	3000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	5000
b.	1150			6150

Drafting equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	60000
f.	G1	20000		80000

Building				Account no. 170
Date	PR	Debit	Credit	Balance
c.	G1	55000		55000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
m.	G1	1150		1150
h.	G1		1150	0
j.	G1		1333	1333

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
a.	G1			165000
				165000

Engineering fees earned				Account no. 402
Date	PR	Debit	Credit	Balance
e.	G1		6200	6200
g.			14000	20200
i.			22000	42200

Rental expense				Account no. 602
Date	PR	Debit	Credit	Balance
j.	G1	1333		1333

Repair				Account no. 604
Date	PR	Debit	Credit	Balance
n.	G1	925		925

Land				Account no. 172
Date	PR	Debit	Credit	Balance
b.	G1	49000		49000

Note payable				Account no. 250
Date	PR	Debit	Credit	Balance
b.	G1		42700	42700
F			10500	53200

Dividends				Account no. 319
Date	PR	Debit	Credit	Balance
o.	G1	9480

Wages Expense				Account no. 601
Date	PR	Debit	Credit	Balance
l.	G1	1200
p.	G1	1200

Advertisement Expense				Account no. 601
Date	PR	Debit	Credit	Balance
q	G1	2500		2500

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 5GLP

Total of trail balance is $261733

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	22954
Account receivable	29000
Prepaid insurance	3000
Office equipment	6150
Drafting equipment	80000
Building	55000
Land	49000
Account payable		133
Notes payable		5300
Common stock		165000
Engineering fees		42200
Dividend	9480
Wages	2400
Equipment rental	1333
Advertisement	2500
Repair	925
Total	261733	261733

Answer 6

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

Explanation of Solution

Date (June)	Particular	PR	Dr.	Cr.
a.	Cash	101	100,000
	Office Equipment	163	5,000
	Drafting equipment	164	60,000
	To Common stock			165,000
	(Owner’s investment)

b.	Land	172	49,000
	To cash	101		6300
	To note payable	290		42,700
	(Land purchase for cash and note payable )

c.	Portable building	170	55000
	To cash	101		55000
	(Portable building purchase for cash)

d.	Insurance paid	108	3000
	To cash	101		3000
	(Cash paid for insurance)

e.	Cash	101	6200
	Service revenue	402		6200
	(cash received against service render)

f.	Drafting Equipment	164	20000
	To cash	101		9500
	To note payable	290		10500


g.	Account receivable	106	14000
	Service revenue	402		14000
	(service render on credit)

h.	Office equipment	163	1150
	To purchase	201		1150
	(Purchase of office equipment on credit)

i.	Account receivable	106	22000
	Service revenue	402		22000
	(Provide service on credit)

j.	Rent	602	1333
	To account payable	201		1333
	(rent to be paid in 30 days)

k.	Cash	101	7000
	To Account receivable	106		7000
	(Received cash)

l.	Wages	601	1200
	To cash	101		1200
	(Wages paid to drafting Assistant)

m.	Office equipment	201	1150
	To cash	101		1150

n.	Repair equipment	604	925
	To cash	101		925


o.	Dividends	319	9480
	Cash	101		9480
	(to record the payment of cash as dividend)

p.	Drafting assistant	601	1200
	Cash	101		1200


q.	Advertisement	603	2500
	Cash	101		2500
	(Paid cash for advertise)

Answer 7

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.

Answer 8

1.

Expert Solution

Explanation of Solution

Date (June)	Particular	PR	Dr.	Cr.
a.	Cash	101	100,000
	Office Equipment	163	5,000
	Drafting equipment	164	60,000
	To Common stock			165,000
	(Owner’s investment)

b.	Land	172	49,000
	To cash	101		6300
	To note payable	290		42,700
	(Land purchase for cash and note payable )

c.	Portable building	170	55000
	To cash	101		55000
	(Portable building purchase for cash)

d.	Insurance paid	108	3000
	To cash	101		3000
	(Cash paid for insurance)

e.	Cash	101	6200
	Service revenue	402		6200
	(cash received against service render)

f.	Drafting Equipment	164	20000
	To cash	101		9500
	To note payable	290		10500


g.	Account receivable	106	14000
	Service revenue	402		14000
	(service render on credit)

h.	Office equipment	163	1150
	To purchase	201		1150
	(Purchase of office equipment on credit)

i.	Account receivable	106	22000
	Service revenue	402		22000
	(Provide service on credit)

j.	Rent	602	1333
	To account payable	201		1333
	(rent to be paid in 30 days)

k.	Cash	101	7000
	To Account receivable	106		7000
	(Received cash)

l.	Wages	601	1200
	To cash	101		1200
	(Wages paid to drafting Assistant)

m.	Office equipment	201	1150
	To cash	101		1150

n.	Repair equipment	604	925
	To cash	101		925


o.	Dividends	319	9480
	Cash	101		9480
	(to record the payment of cash as dividend)

p.	Drafting assistant	601	1200
	Cash	101		1200


q.	Advertisement	603	2500
	Cash	101		2500
	(Paid cash for advertise)

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

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 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
Date	PR	Debit	Credit	Balance
a.	G1	100000		100000
b.	G1		6300	93700
c.	G1		55000	38700
d.	G1		3000	35700
e.	G1	6200		41900
f.	G1		9500	32400
k.	G1	7000		39400
l.	G1		1200	38200
m.			1150	37050
n.			925	36125
o.			9480	26645
p.			1200	25445
q.			2500	22945

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
g.	G1	14000		14000
i.	G1	22000		36000
k.	G1		7000	29000

Prepaid Insurance				Account no. 128
Date	PR	Debit	Credit	Balance
d.	G1		3000	3000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	5000
b.	1150			6150

Drafting equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	60000
f.	G1	20000		80000

Building				Account no. 170
Date	PR	Debit	Credit	Balance
c.	G1	55000		55000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
m.	G1	1150		1150
h.	G1		1150	0
j.	G1		1333	1333

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
a.	G1			165000
				165000

Engineering fees earned				Account no. 402
Date	PR	Debit	Credit	Balance
e.	G1		6200	6200
g.			14000	20200
i.			22000	42200

Rental expense				Account no. 602
Date	PR	Debit	Credit	Balance
j.	G1	1333		1333

Repair				Account no. 604
Date	PR	Debit	Credit	Balance
n.	G1	925		925

Land				Account no. 172
Date	PR	Debit	Credit	Balance
b.	G1	49000		49000

Note payable				Account no. 250
Date	PR	Debit	Credit	Balance
b.	G1		42700	42700
F			10500	53200

Dividends				Account no. 319
Date	PR	Debit	Credit	Balance
o.	G1	9480

Wages Expense				Account no. 601
Date	PR	Debit	Credit	Balance
l.	G1	1200
p.	G1	1200

Advertisement Expense				Account no. 601
Date	PR	Debit	Credit	Balance
q	G1	2500		2500

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.

Answer 14

2.

Expert Solution

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.

Answer 15

2.

Expert Solution

Answer 16

2.

Expert Solution

Answer 17

Expert Solution

Answer 18

Explanation of Solution

Cash Account No.101
Date	PR	Debit	Credit	Balance
a.	G1	100000		100000
b.	G1		6300	93700
c.	G1		55000	38700
d.	G1		3000	35700
e.	G1	6200		41900
f.	G1		9500	32400
k.	G1	7000		39400
l.	G1		1200	38200
m.			1150	37050
n.			925	36125
o.			9480	26645
p.			1200	25445
q.			2500	22945

Account receivable				Account no.106
Date	PR	Debit	Credit	Balance
g.	G1	14000		14000
i.	G1	22000		36000
k.	G1		7000	29000

Prepaid Insurance				Account no. 128
Date	PR	Debit	Credit	Balance
d.	G1		3000	3000

Office equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	5000
b.	1150			6150

Drafting equipment				Account no. 163
Date	PR	Debit	Credit	Balance
a.	G1	60000
f.	G1	20000		80000

Building				Account no. 170
Date	PR	Debit	Credit	Balance
c.	G1	55000		55000

Account payable				Account no. 201
Date	PR	Debit	Credit	Balance
m.	G1	1150		1150
h.	G1		1150	0
j.	G1		1333	1333

Common stock				Account no. 307
Date	PR	Debit	Credit	Balance
a.	G1			165000
				165000

Engineering fees earned				Account no. 402
Date	PR	Debit	Credit	Balance
e.	G1		6200	6200
g.			14000	20200
i.			22000	42200

Rental expense				Account no. 602
Date	PR	Debit	Credit	Balance
j.	G1	1333		1333

Repair				Account no. 604
Date	PR	Debit	Credit	Balance
n.	G1	925		925

Land				Account no. 172
Date	PR	Debit	Credit	Balance
b.	G1	49000		49000

Note payable				Account no. 250
Date	PR	Debit	Credit	Balance
b.	G1		42700	42700
F			10500	53200

Dividends				Account no. 319
Date	PR	Debit	Credit	Balance
o.	G1	9480

Wages Expense				Account no. 601
Date	PR	Debit	Credit	Balance
l.	G1	1200
p.	G1	1200

Advertisement Expense				Account no. 601
Date	PR	Debit	Credit	Balance
q	G1	2500		2500

Answer 19

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 5GLP

Total of trail balance is $261733

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	22954
Account receivable	29000
Prepaid insurance	3000
Office equipment	6150
Drafting equipment	80000
Building	55000
Land	49000
Account payable		133
Notes payable		5300
Common stock		165000
Engineering fees		42200
Dividend	9480
Wages	2400
Equipment rental	1333
Advertisement	2500
Repair	925
Total	261733	261733

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.

Answer 21

3.

Expert Solution

Answer to Problem 5GLP

Total of trail balance is $261733

Answer 22

3.

Expert Solution

Answer 23

3.

Expert Solution

Answer 24

Expert Solution

Answer 25

Explanation of Solution

HTrail balance30^t^hNov.
Particular	Dr.	Cr.
Cash	22954
Account receivable	29000
Prepaid insurance	3000
Office equipment	6150
Drafting equipment	80000
Building	55000
Land	49000
Account payable		133
Notes payable		5300
Common stock		165000
Engineering fees		42200
Dividend	9480
Wages	2400
Equipment rental	1333
Advertisement	2500
Repair	925
Total	261733	261733

Answer 26

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

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Chapter 2 Solutions