Question

In: Accounting

GBA 5205 Survey of Accounting Fifth Edition by Edmonds (ISBN 9781307078473) Problem 2-32 Recording events in...

GBA 5205

Survey of Accounting Fifth Edition by Edmonds (ISBN 9781307078473)

Problem 2-32

Recording events in a horizontal statements model

The following events pertain to Super Cleaning Company:

1. Acquired $10,000 cash from the issue of common stock.

2. Provided $15,000 of services on account.

3. Provided services for $5,000 cash.

4. Received $2,800 cash in advance for services to be performed in the future.

5. Collected $12,200 cash from the account receivable created in Event 2.

6. Paid $1,900 for cash expenses.

7. Performed $1,400 of the services agreed to in Event 4.

8. Incurred $3,600 of expenses on account.

9. Paid $4,800 cash in advance for one-year contract to rent office space.

10. Paid $2,800 cash on the account payable created in Event 8.

11. Paid a $1,500 cash dividend to the stockholders.

12. Recognized rent expense for nine months’ use of office space acquired in Event 9

Required

Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Use NA to indicate accounts not affected by the event. The first event is recorded as an example.

PROBLEM 2-32

Super Cleaning Company

Effect of Events on the Financial Statements

Balance Sheet

Income Statement

Stmt. of

Assets

=

Liabilities

+

Stockholders’ Equity

Rev.

-

Exp.

=

Net Inc.

Cash Flows

Event

No.

Cash

+

Accts Rec.

+

Pp. Rent

=

Accts. Pay.

+

Unearn Rev.

+

Com. Stock

+

Ret. Earn.

1.

10,000

+

NA

+

NA

=

NA

+

NA

+

10,000

+

NA

NA

-

NA

=

NA

10,000   FA

2.

+

+

=

+

+

+

-

=

3.

+

+

=

+

+

+

-

=

4.

+

+

=

+

+

+

-

=

5.

+

+

=

+

+

+

-

=

6.

+

+

=

+

+

+

-

=

7.

+

+

=

+

+

+

-

=

8.

+

+

=

+

+

+

-

=

9.

+

+

=

+

+

+

-

=

10.

+

+

=

+

+

+

-

=

11.

+

+

=

+

+

+

-

=

12.

+

+

                  *

=

+

+

+

-

=

Bal.

$                 

+

$             

=

$             

+

$             

+

$             

$             

-

$             

$             

$             

=

*$          x    /12 = $

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Problem 2-32 Recording events in a horizontal statements model The following events pertain to Super Cleaning...
Problem 2-32 Recording events in a horizontal statements model The following events pertain to Super Cleaning Company: Acquired $10,000 cash from the issue of common stock. Provided $15,000 of services on account. Page 85 Provided services for $5,000 cash. Received $2,800 cash in advance for services to be performed in the future. Collected $12,200 cash from the account receivable created in Event 2. Paid $1,900 for cash expenses. Performed $1,400 of the services agreed to in Event 4. Incurred $3,600...
Please solve Problem 3-11 from your textbook (Introduction to Managerial Accounting; Fifth Canadian Edition, by Brewer,...
Please solve Problem 3-11 from your textbook (Introduction to Managerial Accounting; Fifth Canadian Edition, by Brewer, Garrison, Noreen, Kalagnanam, and Vaidyanathan) considering the following new information and requirements: The company received a request for a 300-Kg order of potassium aspartate. The customer offers to pay $12.50per Kg for this order. The company usually adds a 30%markup for this type of orders. Material requirements Material Required Quantity (per Kg) Price ($) per Kg Aspartic Acid 190.00 5.75 Citric Acid 10.00 2.00...
Please solve Problem 3-11 from your textbook (Introduction to Managerial Accounting; Fifth Canadian Edition, by Brewer,...
Please solve Problem 3-11 from your textbook (Introduction to Managerial Accounting; Fifth Canadian Edition, by Brewer, Garrison, Noreen, Kalagnanam, and Vaidyanathan) considering the following new information and requirements: The company received a request for a 300-Kg order of potassium aspartate. The customer offers to pay $12.50per Kg for this order. The company usually adds a 30%markup for this type of orders. Material requirements Material Required Quantity (per Kg) Price ($) per Kg Aspartic Acid 190.00 5.75 Citric Acid 10.00 2.00...
Thirteenth Edition College Accounting Chapters 1-30 Chapter 27 Problem Set A OBJECTIVE: Recording purchase and issuance...
Thirteenth Edition College Accounting Chapters 1-30 Chapter 27 Problem Set A OBJECTIVE: Recording purchase and issuance of direct and indirect materials, recording labor costs, applying overhead, computing overapplied or underapplied overhead, recording cost of jobs completed, and cost of goods sold. In April 2013, NoCal Trailers Co. had the following cost data: COST DATA a. Raw materials costing $82,000 were purchased. b. Raw materials costing $80,000 were used: direct materials, $75,000; indirect materials $5,000. c. Factory wages of $52,000 were...
Using textbook Title Introductory Financial Accounting for Business Author Edmonds, Christopher T. ISBN 978-1-260-81444-6 Publisher McGraw-Hill...
Using textbook Title Introductory Financial Accounting for Business Author Edmonds, Christopher T. ISBN 978-1-260-81444-6 Publisher McGraw-Hill Education Publication Date January According to GAAP, uncollectible receivables must be estimated and recorded as an expense in the period in which the corresponding revenue is earned. This ensures compliance with the matching principle. (1) Compare and contrast the percent of revenue method and the percent of receivables method. (2) Why would a financial manager or analyst be concerned if the Allowance for Doubtful...
Financial accounting involves identifying, measuring, recording, and communicating in dollar terms the economic events and status...
Financial accounting involves identifying, measuring, recording, and communicating in dollar terms the economic events and status of an organization. This is typically done through the use of 3 financial statements. These 3 statements are used to summarize the organization's financial status and performance. This is key to the survival of most healthcare organizations today. We have to know how much money we made and how much we spent. List the 3 financial statements used in financial accounting. Discuss the importance...
Book ISBN: 1111535221 Financial and Manengarial Accounting using excell for success Question: Continuing Problem Pg. 99-100....
Book ISBN: 1111535221 Financial and Manengarial Accounting using excell for success Question: Continuing Problem Pg. 99-100. The transaction completed by PS Music during June 2012 were described at the end of Chapter 1. The follwoing transaction where completed during July, the second monh of the business opperations: July 1. Pat Sharp made an additional investment in PS Music in exchange for capital stock by depositing $4,000 in PS Musics checking account.        1. Instead of continuing to share office space...
Question 6-32, Management Accounting 6th Edition Pricing, customer profitability, managing customer relationships Read the Wall Street...
Question 6-32, Management Accounting 6th Edition Pricing, customer profitability, managing customer relationships Read the Wall Street Journal Article, “Survival Strategies: After Cost Cutting, Companies Turn toward Price Increases,” by Timothy Aeppel (September 18, 2002, p. A1). The article reports “an all-out search for new ways to change more money without raising prices.” How did Jergens, Inc., use an activity-based costing approach to justify the price for an order of odd-size metal locating fasteners? What issues arose in Goodyear Tire &...
Problem 1-35 Recording events in a horizontal statements model CHECK FIGURES a. Net Income: $23,000 e....
Problem 1-35 Recording events in a horizontal statements model CHECK FIGURES a. Net Income: $23,000 e. Net Cash Flow from Operating Activities: $23,000 Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: Acquired $30,000 cash from the issue of common stock. Borrowed $40,000 cash from National Bank. Page 45 Earned cash revenues of $48,000 for performing services. Paid cash expenses of $25,000. Paid a $1,000 cash dividend to the stockholders....
Could you please post the solution for Problem 21.2A in Financial and Managerial Accounting 18th Edition...
Could you please post the solution for Problem 21.2A in Financial and Managerial Accounting 18th Edition by Jan Williams? PROBLEM 21.2A Make or Buy Decision Easyuse Tool Co. manufactures an electric motor that it uses in several of its products. Management is considering whether to continue manufacturing the motors or to buy them from an outside source. The following information is available. The company needs 12,000 motors per year. The motors can be purchased from an outside supplier at a...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT