Question
In: Accounting
The following accounts and corresponding balances were drawn from Thornton Company’s Year 2 and Year 1...
The following accounts and corresponding balances were drawn from Thornton Company’s Year 2 and Year 1 year-end balance sheets.
| Account Title | Year 2 | Year 1 | ||||
| Accounts receivable | $ | 73,700 | $ | 80,300 | ||
| Prepaid rent | 520 | 930 | ||||
| Utilities payable | 1,790 | 1,020 | ||||
| Other operating expenses payable | 31,400 | 34,400 | ||||
The Year 2 income statement is shown as follows.
| Income Statement | |||
| Sales | $ | 297,000 | |
| Rent expense | (23,000 | ) | |
| Utilities expense | (35,800 | ) | |
| Other operating expenses | (166,400 | ) | |
| Net Income | $ | 71,800 | |
Required
-
Prepare the operating activities section of the statement of cash flows using the direct method.
-
Prepare the operating activities section of the statement of cash flows using the indirect method.
Solutions
ekkarill92 answered 8 months agoRelated Solutions
The following accounts and corresponding balances were drawn from Rooney Company’s Year 2 and Year 1...
The following accounts and corresponding balances were drawn
from Rooney Company’s Year 2 and Year 1 year-end balance
sheets.
Account Title
Year 2
Year 1
Accounts receivable
$
74,300
$
79,700
Prepaid rent
630
1,020
Utilities payable
1,640
850
Other operating expenses payable
32,100
35,600
The Year 2 income statement is shown as follows.
Income Statement
Sales
$
292,000
Rent expense
(22,900
)
Utilities expense
(34,700
)
Other operating expenses
(167,400
)
Net Income
$
67,000
Required
Prepare the operating...
6. The following accounts and balances were drawn from the records of Barker Company at December...
6.
The following accounts and balances were drawn from the records
of Barker Company at December 31, 2018:
Supplies
$
820
Beginning retained earnings
$
20,000
Cash flow from investing act.
(6,400
)
Cash flow from financing act.
(5,300
)
Prepaid insurance
2,500
Rent expense
2,300
Service revenue
80,000
Dividends
5,200
Other operating expenses
43,000
Cash
11,900
Supplies expense
230
Accounts receivable
20,000
Insurance expense
1,000
Prepaid rent
4,800
Beginning common stock
1,000
Unearned revenue
6,400
Cash flow from operating...
The following accounts and balances were drawn from the records of Barker Company at December 31,...
The following accounts and balances were drawn from the records
of Barker Company at December 31, 2018:
Supplies
$
690
Beginning retained earnings
$
19,000
Cash flow from investing
act.
(6,400
)
Cash flow from financing
act.
(5,700
)
Prepaid insurance
2,600
Rent expense
2,800
Service revenue
78,000
Dividends
4,900
Other operating expenses
42,000
Cash
10,900
Supplies expense
290
Accounts receivable
19,000
Insurance expense
1,000
Prepaid rent
5,000
Beginning common stock
1,100
Unearned revenue
6,400
Cash flow from operating
act....
The following accounts and balances were drawn from the records of Barker Company at December 31,...
The following accounts and balances were drawn from the records
of Barker Company at December 31, 2018:
Supplies
$
770
Beginning retained earnings
$
18,000
Cash flow from investing act.
(6,900
)
Cash flow from financing act.
(5,600
)
Prepaid insurance
2,500
Rent expense
2,600
Service revenue
85,000
Dividends
5,400
Other operating expenses
43,000
Cash
12,300
Supplies expense
240
Accounts receivable
18,000
Insurance expense
1,200
Prepaid rent
4,900
Beginning common stock
900
Unearned revenue
6,900
Cash flow from operating act....
A company’s financial records report the following accounts and balances at the end of the year:...
A company’s financial records report the following accounts and
balances at the end of the year:
Accounts payable
$ 4,000
Accounts receivable
4,700
Cash
14,100
Common stock
5,600
Dividends
2,200
Interest expense
18,500
Notes payable
5,200
Prepaid insurance
2,700
Retained insurance
2,400
Service revenue
25,000
What would the company show as its total credits on its trial
balance?
a) $39,800
b) $43,400
c) $36,600
d) $42,200
e) $44,400
2. The following selected accounts and account balances were taken from the records of Nowell Company....
2. The following selected accounts and account balances were
taken from the records of Nowell Company. Except as otherwise
indicated, all balances are as of December 31, 2018, before the
closing entries were recorded.
Consulting revenue
$
9,300
Cash
8,400
Cash received from common stock issued during 2017
3,600
Travel expense
550
Dividends
1,200
Cash flow from investing activities
3,000
Rent expense
1,450
Payment to reduce debt principal
18,200
Retained earnings, January 1, 2018
14,300
Salary expense
2,500
Cash flow...
On December 1 of the current year, the following accounts and their balances appear in the...
On December 1 of the current year, the following accounts and
their balances appear in the ledger of Latte Corp., a coffee
processor:
Preferred 2% Stock, $50 par (240,000 shares authorized, 86,000
shares issued)
$4,300,000
Paid-In Capital in Excess of Par—Preferred Stock
516,000
Common Stock, $30 par (1,000,000 shares authorized, 415,000
shares issued)
12,450,000
Paid-In Capital in Excess of Par—Common Stock
1,245,000
Retained Earnings
184,170,000
At the annual stockholders’ meeting on March 31, the board of
directors presented a plan...
On December 1 of the current year, the following accounts and their balances appear in the...
On December 1 of the current year, the following accounts and
their balances appear in the ledger of Latte Corp., a coffee
processor:
Preferred 2% Stock, $50 par
(240,000 shares authorized, 86,000 shares issued)
$4,300,000
Paid-In Capital in Excess of
Par—Preferred Stock
516,000
Common Stock, $30 par (1,000,000
shares authorized, 415,000 shares issued)
12,450,000
Paid-In Capital in Excess of
Par—Common Stock
1,245,000
Retained Earnings
184,170,000
At the annual stockholders’ meeting on March 31, the board of
directors presented a plan...
The following accounts and their balances were selected from the unadjusted trial balance of Point Loma...
The following accounts and their balances were selected from the
unadjusted trial balance of Point Loma Group Inc., a freight
forwarder, at October 31, the end of the current fiscal year: 1
Common Stock, no par, $10 stated value $3,330,000.00 2 Paid-In
Capital from Sale of Treasury Stock 44,400.00 3 Paid-In Capital in
Excess of Par-Preferred Stock 226,000.00 4 Paid-In Capital in
Excess of Stated Value-Common Stock 459,500.00 5 Preferred 2%
Stock, $120 par 9,480,000.00 6 Retained Earnings 39,660,000.00
Prepare...
At the beginning of Year 2, the Redd Company had the following balances in its accounts:...
At the beginning of Year 2, the Redd Company had the following
balances in its accounts:
Cash
$
16,800
Inventory
9,000
Land
3,900
Common stock
17,000
Retained earnings
12,700
During Year 2, the company experienced the following
events:
Purchased inventory that cost $13,100 on account from Ross
Company under terms 2/10, n/30. The merchandise was delivered FOB
shipping point. Freight costs of $990 were paid in cash.
Returned $900 of the inventory it had purchased from Ross
Company because the...
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