Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter C, Problem 9SE
1.
To determine
Ascertain the change in cash balance during the year.
2.
To determine
Identify whether there are any Non-cash transactions for the company and state the way in which it would be reported on the statement of cash flows.
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Zirkle Company borrowed $146,000 from Plains Bank on July 31, Year 1. The note carried a 6% interest rate with a one-year term t
maturity.
Required:
a. Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.
b. What is the amount of interest expense for Year 1?
c. Prepare a statement of cash flows for the Zirkle Company for Year 1.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Prepare a statement of cash flows for the Zirkle Company for Year 1.
Note: Cash outflows should be indicated with a minus sign.
ZIRKLE COMPANY
Statement of Cash Flows
For the Year Ended December 31, Year 1
Cash flows from operating activities
Net cash flow from operating activities
Cash flows from investing activities
Net cash flow from investing activities
Cash flows from financing activities
Ending cash balance
Net cash flow from financing activities
On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 7 percent interest.
Required
a. What is Benz's interest income for Year 1?
b. What is Benz's total amount of receivables at December 31, Year 1?
c. How will the loan and interest be reported on Benz's Year 1 statement of cash flows?
d. What is Benz's interest income for Year 2?
e. What is the total amount of cash that Benz's will collect in Year 2 from Mark Henry?
f. How will the loan and interest be reported on Benz's Year 2 statement of cash flows?
g. What is the total amount of interest that Benz's earned on the loan to Mark Henry?
(For all requirements, round your answers to the nearest dollar amount.)
а. Int
est income
b. Receivables
C.
d. Interest income
e. Cash
f.
g. Interest earned
Chapter C Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
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