Question

In: Accounting

Assets Cash                                        &nb

Assets

Cash                                                                                          $500,000

Accounts Receivable                                                                  700,000                             

Inventory                                                                                     300,000

Property, Plant & Equipment                                                       900,000

Accumulated Depreciation                                                    (100,000)            

Total Assets                                                                           $2,300,000

Liabilities & Equity

Accounts Payable                                                                       $300,000

Notes Payable                                                                            1,000,000

Common Stock                                                                             500,000

Retained Earnings                                                                        500,000

Total Liabilities & Equity                                                      $2,300,000

Journal Entries for January 2013

Transaction 1: Sales Return

The buyer returns merchandise to the seller.

Journal Entry:                                                                                   Dr.                              Cr.

Sales Returns & Allowances                                                      22,000

Accounts Receivable                                                                                           22,000

Transaction 2: Sales Discounts

Description: Recorded collection within 2/10, n/30 period.

Journal Entry:                                                                                    Dr.                              Cr.

Cash                                                                                                24,500

  Sales Discounts                                                                                    500

                  Accounts Receivable                                                                                           25,000

Journal Entry:                                                                                       Dr.                             Cr.

Cash                                                                                                 155,000

Sales Revenue                                                                                                      155,000

Transaction 4: Cost Flow Assumption

Recorded cost of goods sold under one of the cost flow assumptions.

Journal Entry:                                                                                     Dr.                             Cr.

Cost of Goods Sold                                                                           45,000

                Inventory                                                                                                              45,000                                                                                              

Transaction 5: Recording Estimated Uncollectible

Description: The credit manager estimates that $16,000 of sales will be uncollectible.

Journal Entry:                                                                                      Dr.                             Cr.

Bad Debts Expense                                                                         16,000

                Allowance for Doubtful Accounts                                                                        16,000

Transaction 6: Write-off of an uncollectible account

Description: The credit manager authorizes a write-off of a $5,500 balance owed by a customer.

Journal Entry:                                                                                      Dr.                             Cr.

Allowance for Doubtful Accounts                                                   5,500

                Accounts Receivable                                                                                             5,500

Transaction 7: Depreciation Expense

Recorded depreciation expense under one of the depreciation methods.

Journal Entry:                                                                                    Dr.                               Cr.

Depreciation Expense                                                                    12,000

Accumulated Depreciation                                                                                  12,000

                  Transaction 8: Investment by Stockholders
                  Description: Invested $55,000 cash in the business in exchange for common stock.
                  Journal Entry:                                                                                      Dr.                               Cr.

                  Cash                                                                                                  55,000

                                    Common Stock                                                                                                     55,000

                  Transaction 9: Dividends

                  Description: The corporation pays a dividend of $4,700 in cash to the stockholders.

                  Journal Entry:                                                                                      Dr.                              Cr.

                  Dividends                                                                                            4,700

                                    Cash                                                                                                                      4,700

                  Transaction 10: Purchase of Equipment

                  Description: Purchases computer equipment for $7,800 cash.

                  Journal Entry:                                                                                     Dr.                             Cr.

                  Equipment                                                                                           7,800

                                    Cash                                                                                                                      7,800

                Transaction 11: Purchase of Supplies on Credit

                Description: Purchases $4,800 of inventory on credit.

                Journal Entry:                                                                                       Dr.                              Cr.

                Inventory                                                                                              4,800

                                     Accounts Payable                                                                                                 4,800

9. What is the net increase in cash for the period?

A.   $222,000

B.   $225,000

C.   $300,000

D. $325,000

10. What is the net cash provided by operating activities?

A. $179,500

B.   $186,500

C.   $183,400

D.   $178,300

11. What is the net cash used by investing activities?

A. $(7,200)

B.   $(9,200)

C.   $(8,900)

D. $(7,800)

12. What is the net cash provided by financing activities?

A.   $40,300

B.   $50,500

C.   $50,300

D.   $40,200

Solutions

Expert Solution

9. Answer is A.

10. Answer is A.

11. Aswer is D.

12. Answer is C.

Working:

Net Income 81500
Depreciation 12000
Accounts Receivable 63000
Inventory 18200
Accounts Payable 4800
Cash flow from operating activities 179500
Cash flow from investing activities
Purchase of equipment -7800
Cash flow from financing activities
Issue of common stock 55000
Payment of dividend -4700
Cash flow from financing activities 50300
Net Cash Flow 222000
ASSETS LIABILITIES STOCKHOLDERS' EQUITY
Transaction Cash + A/R + Inventory + Other assets = All.for + A/P + Notes Payable + Paid in capital + Earned Capital
D.Ac/s
Beg.Balance 500000 + 700000 + 300000 + 800000 = + 300000 + 1000000 + 500000 + 500000
Transaction 1 + -22000 + + = + + + + -22000 Returns from A/R
Transaction 2 24500 + -25000 + + = + + + + -500 Collection from A/R
Transaction 3 155000 + + + = + + + + 155000 Sales
Transaction 4 + + -45000 + = + + + + -45000 Cost of goods
Transaction 5 + + + = 16000 + + + + -16000 Bad Debts
Transaction 6 + -5500 + + = -5500 + + + + A/R   w/off
Transaction 7 + + + -12000 = + + + + -12000 Depreciation
Transaction 8 55000 + + + = + + + 55000 + Issue of common stock
Transaction 9 -4700 + + + = + + + + -4700 Dividends
Transaction 10 -7800 + + + 7800 = + + + + Equipment
Transaction 11 + + 4800 + = + 4800 + + + Purchase of inventory
Ending Balance 722000 + 647500 + 259800 + 795800 = 10500 + 304800 + 1000000 + 555000 + 554800
Transactions 222000 + -52500 + -40200 + -4200 = 10500 + 4800 + 0 + 55000 + 54800

ekkarill92 answered 11 months ago
Next > < Previous

Related Solutions

Assets Cash                                        &nb
Assets Cash                                                                                          $500,000 Accounts Receivable                                                                  700,000                              Inventory                                                                                     300,000 Property, Plant & Equipment                                                       900,000 Accumulated Depreciation                                                    (100,000)             Total Assets                                                                           $2,300,000 Liabilities & Equity Accounts Payable                                                                       $300,000 Notes Payable                                                                            1,000,000 Common Stock                                                                             500,000 Retained Earnings                                                                        500,000 Total Liabilities & Equity                                                      $2,300,000 Journal Entries for January 2013 Transaction 1: Sales Return The buyer returns merchandise to the seller. Journal Entry:                                                                                   Dr.                              Cr. Sales Returns &...
Assets Cash                                        &nb
Assets Cash                                                                                           $500,000 Accounts Receivable                                                                  700,000                              Inventory                                                                                     300,000 Property, Plant & Equipment                          900,000 Accumulated Depreciation                          (100,000)              800,000 Total Assets                                                                            $2,300,000 Liabilities & Equity Accounts Payable                                                                      $300,000 Notes Payable                                                                           1,000,000 Common Stock                                                                            500,000 Retained Earnings                                                                       500,000 Total Liabilities & Equity                                                      $2,300,000 Journal Entries for January 2013 Transaction 1: Services Provided for Cash Description: Receives $155,000 cash from customers for programming services it has provided. Journal Entry:                                                                                                          Dr.                       ...
Assets Cash                                        &nb
Assets Cash                                                                                           $500,000 Accounts Receivable                                                                  700,000                              Inventory                                                                                     300,000 Property, Plant & Equipment                          900,000 Accumulated Depreciation                          (100,000)              800,000 Total Assets                                                                            $2,300,000 Liabilities & Equity Accounts Payable                                                                      $300,000 Notes Payable                                                                           1,000,000 Common Stock                                                                            500,000 Retained Earnings                                                                       500,000 Total Liabilities & Equity                                                      $2,300,000 Journal Entries for January 2013 Transaction 1: Services Provided for Cash Description: Receives $155,000 cash from customers for programming services it has provided. Journal Entry:                                                                                                          Dr.                       ...
Assets Cash                                        &nb
Assets Cash                                                                                           $500,000 Accounts Receivable                                                                  700,000                              Inventory                                                                                     300,000 Property, Plant & Equipment                          900,000 Accumulated Depreciation                          (100,000)              800,000 Total Assets                                                                            $2,300,000 Liabilities & Equity Accounts Payable                                                                      $300,000 Notes Payable                                                                           1,000,000 Common Stock                                                                            500,000 Retained Earnings                                                                       500,000 Total Liabilities & Equity                                                      $2,300,000 Journal Entries for January 2013 Transaction 1: Services Provided for Cash Description: Receives $155,000 cash from customers for programming services it has provided. Journal Entry:                                                                                                          Dr.                       ...
Show all of your work. Assets                                      &nb
Show all of your work. Assets                                                             Liabilities and Owner’s Equity                   A/P $60,000 LT Debt 100,000 Total Debt 160,000 CS, par 2,000 PIC 50,000 R/E 50,000 Total Equity $102,000 Total Liabilities and Owners Equity $262,000 Cash $1,000 A/R 6,500 Inventory 62,500 Prepaids 12,000 Fixed Assets 250,000 Accum Depreciation (70,000) Total Assets $262,000 Sales $800,000 COGS 370.000 Gross Profit 430,000 Operating Exp. -170,000 Depreciation -10,000 EBIT 250,000 Interest -10,000 EBT 240,000 Taxes -80,000 Net Income $160,000 Prepare a financial analysis of...
Financial Information for 1993 Cash                                    &nb
Financial Information for 1993 Cash                                                                 $500,000 Taxable Income                                             $300,000                                    Account Payable                                            $800,000 Long-term Debt                                        $1,500,000 Accumulated Depreciation                          $400,000 Account Receivable                                     $900,000                                    Excess Paid in Capital                                  $500,000 Inventory                                                    $1,000,000 Taxes                                                                 $50,000 Common Stock                                         $1,400,000 Gross Fixed Assets                                  $3,000,000                                    Retained Earnings                                         $800,000 Part A- What is firm’s ROA (Return on Asset) and ROE (Return on Equity) when the firm has $550,000 Net Income in 1993? Part B- What is firm’s Current & Quick Ratio in 1993? Part C- What is firm’s Net Profit Margin and EPS (Earnings Per Share) in 1993?  Assume that the firm...
                               Assets Current assets:     Cash $ &nbsp
                               Assets Current assets:     Cash $       500,000     Marketable securities          100,000     Accounts receivable $     2,450,000         Less: Allowance for bad debts           250,000       2,200,000     Inventory       5,400,000                                 Total current assets $    8,200,000 Fixed assets:     Plant and equipment, original cost $    31,300,000         Less: Accumulated depreciation       13,100,000     Net plant and equipment     18,200,000 Total assets $ 26,400,000 Liabilities and Owners’ Equity Current liabilities:       Accounts payable $   5,800,000     Accrued expenses      ...
The 2018 Balance Sheet for ABC Corporation is shown below: Assets                                &nb
The 2018 Balance Sheet for ABC Corporation is shown below: Assets                                                  Liabilities Cash                                $10,000        Accounts Payable                              $ 8,000 Accounts Receivable        20,000        Accruals                                                2,000 Inventory                          40,000            Total Current Liabilities                $10,000    Total Current Assets   $70,000         Bonds                                                $30,000 Net Fixed Assets          $150,000            Total Liabilities                              $40,000                                                              Owners Equity                                                              Common Stock                                $100,000                                                              Retained Earnings                                80,000    Total Assets               $220,000          Total Liabilities & Owners Equity $220,000    The firm is currently operating at 100% capacity with sales of $100,000. Management believes that...
QUESTION: YOUR BANK HAS THE FOLLOWING BALANCE SHEET: Assets                                &nb
QUESTION: YOUR BANK HAS THE FOLLOWING BALANCE SHEET: Assets                                             Liabilities                          Reserves     $   50 million              Checkable deposits         $200 million Securities        50 million              Loans             150 million              Bank capital                     50 million IF THE REQUIRED RESERVE RATIO IS 10%, WHAT ACTIONS SHOULD THE BANK MANAGER TAKE IF THERE IS AN UNEXPECTED DEPOSIT OUTFLOW OF $50 MILLION?
SPRING TRAINING INC.   Balance Sheet                             December 31, 2017 ASSETS  &nb
SPRING TRAINING INC.   Balance Sheet                             December 31, 2017 ASSETS                                                         LIABILITIES Cash                              $25,000             Accounts Payable                 $50,000 Accounts Rec.                   5,000             Mortgage Payable                 50,000 Inventory                        14,000               Supplies                            2,000             Total Liabilities                                  $100,000 Land                                18,000 Buildings      $220,000                             STOCKHOLDER EQUITY     Acc. Depr. <20,000> 200,000           Equipment     200,000                             Common Stock $5 Par      $30,000     Acc. Depr <14,000> 186,000             Excess of Par                     $300,000                                                                   Retained Earnings               20,000                                                                    Total Equity                                     $350,000 TOTAL ASSETS        $450,000              TOTAL LIAB. & EQUITY        ...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT