Explanation T-account: T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’. The components of the T-account are as follows: a) The title of the account b) The left or debit side c) The right or credit side The T-accounts for Company R, for various accounts are shown below: Cash Account: Cash (Statement of Cash Flows) (Amount in millions) (13) $86 Cash Balance Operating activities: From customers (1) $1,954 (2) $1,523 To suppliers of goods (4) $456 For operating expenses Investing activities: Sale of equipment (7) $9 (6) $230 Purchase of equipment Financing activities: Issuance of note payable (8) $50 (9) $50 Payment of cash dividends Issuance of bonds payable (10) $160 Table (1) Accounts receivable (Amount in millions) Increase in Accounts receivable $46 Opening Balance $132 $178 Closing Balance Prepaid Insurance (Amount in millions) Increase in Prepaid Insurance $4 Opening Balance $3 $7 Closing Balance Inventory (Amount in millions) Increase in inventory $110 Opening Balance $175 $285 Closing Balance Buildings and Equipment (Amount in millions) Decrease in buildings and equipment $50 Opening Balance $230 $180 Closing Balance Accumulated Depreciation (Amount in millions) Decrease in accumulated depreciation $121 Opening Balance $171 $50 Closing Balance Accounts payable (Amount in millions) Decrease in accounts payable $13 Opening Balance $100 $87 Closing Balance Accrued Expenses Payable (Amount in millions) Decrease in accrued expenses $5 Opening Balance $11 $6 Closing Balance Notes Payable (Amount in millions) $50 Increase in Notes Payable Opening Bala...

9th Edition

ISBN: 9781260679694

Author: SPICELAND

Publisher: MCG

See similar textbooks

Concept explainers

Reporting Cash Flows

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

Videos

Question

Chapter 21, Problem 21.32E

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period.

To Prepare: The Statement of cash flow for Company R, using the T-Accounts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 21, Problem 21.31E

Chapter 21, Problem 21.1P

Students have asked these similar questions

Ch13

Question 8 of 20 View Policies Current Attempt in Progress O O When preparing a statement of cash flows, the following are used for which method in determining cash flows from operating activities? Direct Indirect Net Accounts Receivable Direct Indirect Indirect -/1 Direct !!!

Problem 21-4 (Static) Statement of cash flows; direct method [LO21-3, 21-8] The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

Chapter 21 Solutions

INTERMEDIATE ACCOUNTING (LL) W/CONNECT

Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2Q Ch. 21 - Prob. 21.3Q Ch. 21 - Prob. 21.4Q Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Solution Summary: The author explains that the T-account is the form of the ledger account, where the journal entries are posted to this account.

Concept explainers

Videos

Want to see the full answer?

Chapter 21 Solutions