Question
In: Accounting
The following events were completed by Dana’s Imports in September 2018: Sept. 1 Acquired $51,000 cash...
The following events were completed by Dana’s Imports in September 2018:
| Sept. | 1 | Acquired $51,000 cash from the issue of common stock. |
| 1 | Purchased $33,500 of merchandise on account with terms 2/10, n/30. | |
| 5 | Paid $850 cash for freight to obtain merchandise purchased on September 1. | |
| 8 | Sold merchandise that cost $11,750 to customers for $16,500 on account, with terms 2/10, n/30. | |
| 8 | Returned $500 of defective merchandise from the September 1 purchase to the supplier. | |
| 10 | Paid cash for the balance due on the merchandise purchased on September 1. | |
| 20 | Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period. | |
| 30 | Paid $3,100 cash for selling expenses. |
Required
-
Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example.
-
Prepare an income statement for the month ending September 30.
-
Prepare a statement of cash flows for the month ending September 30.
| DANA'S IMPORTS | ||||||||||||||||||
| Effect of Transactions on Financial Statements Using Horizontal Statements Model | ||||||||||||||||||
| Date | Balance Sheet | Income Statement | Statement of Cash Flows | |||||||||||||||
| Assets | = | Liabilities | + | Stockholders’ Equity | Revenue | – | Expenses | = | Net Income | |||||||||
| Cash | + | Accounts Receivable | + | Inventory | = | Accounts Payable | + | Common Stock | + | Retained Earnings | ||||||||
| 9/1 | 51,000 | + | + | = | + | 51,000 | + | – | = | 51,000 | FA | |||||||
| 9/1 | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 9/5 | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 9/8a. | not attempted | +not attempted | not attempted | +not attempted | not attempted | =not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | not attempted | –not attempted | not attempted | =not attempted | not attempted | not attempted | not attempted |
| 9/8b. | not attempted | +not attempted | not attempted | +not attempted | not attempted | =not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | not attempted | –not attempted | not attempted | =not attempted | not attempted | not attempted | not attempted |
| 9/8c. | not attempted | +not attempted | not attempted | +not attempted | not attempted | =not attempted | not attempted | +not attempted | not attempted | +not attempted | not attempted | not attempted | –not attempted | not attempted | =not attempted | not attempted | not attempted | not attempted |
| 9/10 | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 9/20 | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 9/30 | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| Total | $51,000 | + | $0 | + | $0 | = | $0 | + | $51,000 | + | $0 | $0 | – |
$ |
= | $0 | $51000 | |
| DANA'S IMPORTS | |
| Income Statement | |
| For the Month Ended September 30, 2018 | |
| not attempted | not attempted |
| not attempted | not attempted |
| not attempted | not attempted |
| Operating expenses | |
| not attempted | not attempted |
| not attempted | not attempted |
| not attempted | |
| DANA'S IMPORTS | ||
| Statement of Cash Flows | ||
| For the Month ended September 30, 2018 | ||
| Cash flows from operating activities | ||
| not attempted | not attempted | |
| not attempted | not attempted | |
| not attempted | not attempted | |
| not attempted | not attempted | |
| Net cash flow from operating activities | $0 | |
| Cash flows from investing activities | not attempted | |
| Cash flows from financing activities | ||
| not attempted | not attempted | |
| not attempted | not attempted | |
| Net cash flow from financing activities | 0 | |
| Net change in cash | 0 | |
| not attempted | not attempted | |
| Ending cash balance | $0 | |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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The following events were completed by Dana’s Imports in
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Acquired $54,000 cash from the issue of common stock.
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Purchased $35,000 of merchandise on account with terms 2/10,
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Returned $1,100 of defective merchandise from the September 1
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