Question

In: Accounting

When using the spreadsheet (work sheet) for the statement of cash flows, indirect method, entries made...

When using the spreadsheet (work sheet) for the statement of cash flows, indirect method, entries made on the spreadsheet are a. not recorded in to the journal but are posted to the ledger. b. recorded in the journal but not posted to the ledger. c. recorded in the journal and posted to the ledger. d. not recorded in the journal or posted to the ledger.

Solutions

Expert Solution

When using the spreadsheet (work sheet) for the statement of cash flows, indirect method, entries made on the spreadsheet are not recorded in the journal or posted to the ledger.
Entries made on the spreadsheet are just used for preparation of statement of cash flows
Option D is correct

Related Solutions

Statement of Cash Flows Using a Work Sheet—Indirect Method (Appendix) Peoria Corp. just completed another successful...
Statement of Cash Flows Using a Work Sheet—Indirect Method (Appendix) Peoria Corp. just completed another successful year, as indicated by the following income statement: For the Year Ended December 31, 2017 Sales revenue $1,250,000   Cost of goods sold 700,000     Gross profit $550,000   Operating expenses 150,000     Income before interest and taxes $400,000   Interest expense 25,000     Income before taxes $375,000   Income tax expense 150,000     Net income $225,000   Presented here are comparative balance sheets: December 31 2017 2016 Cash $52,000 $90,000 Accounts receivable...
Statement of Cash Flows Using a Work Sheet—Indirect Method (Appendix) Wabash Corp. just completed another successful...
Statement of Cash Flows Using a Work Sheet—Indirect Method (Appendix) Wabash Corp. just completed another successful year, as indicated by the following income statement: For the Year Ended December 31, 2017 Sales revenue $2,460,000   Cost of goods sold 1,400,000     Gross profit $1,060,000   Operating expenses 460,000     Income before interest and taxes $600,000   Interest expense 100,000     Income before taxes $500,000   Income tax expense 150,000     Net income $350,000   Presented here are comparative balance sheets: December 31 2017 2016 Cash $140,000 $210,000 Accounts receivable...
Statement of Cash Flows Using a Work Sheet—Indirect Method (Appendix) Wabash Corp. just completed another successful...
Statement of Cash Flows Using a Work Sheet—Indirect Method (Appendix) Wabash Corp. just completed another successful year, as indicated by the following income statement: For the Year Ended December 31, 2017 Sales revenue $2,460,000   Cost of goods sold 1,400,000     Gross profit $1,060,000   Operating expenses 460,000     Income before interest and taxes $600,000   Interest expense 100,000     Income before taxes $500,000   Income tax expense 150,000     Net income $350,000   Presented here are comparative balance sheets: December 31 2017 2016 Cash $140,000 $210,000 Accounts receivable...
Prepare statement of cash flows using the indirect method. The income statement for 2017 and the...
Prepare statement of cash flows using the indirect method. The income statement for 2017 and the balance sheets for 2017 and 2016 are presented for GibsonGibson ​Industries, Inc. LOADING... ​(Click the icon to view the income​ statement.)                                             LOADING... ​(Click the icon to view the balance​ sheets.) LOADING... ​(Click the icon to view additional​ information.) Requirement Prepare a statement of cash flows for GibsonGibson ​Industries, Inc., for the year ended December​ 31,2017​, using the indirect method. Prepare the statement one section...
Prepare statement of cash flows using the indirect method. The income statement for 2017 and the...
Prepare statement of cash flows using the indirect method. The income statement for 2017 and the balance sheets for 2017 and 2016 are presented for Gibson​ Industries, Inc. ​ ​ LOADING... ​(Click the icon to view additional​ information.) Requirement Prepare a statement of cash flows for Gibson Industries, Inc., for the year ended December​ 31,2017​, using the indirect method. Prepare the statement one section at a time. ​(Use parentheses or a minus sign for numbers to be subtracted and for...
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating...
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign...
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating...
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign...
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating...
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:      Dec. 31, 20Y2      Dec. 31, 20Y1 Assets Cash $ 701,950 $ 755,530 Accounts receivable (net) 638,770 582,620 Inventories 968,690 891,480 Prepaid expenses 22,460 26,670 Land 241,470 365,010 Buildings 1,116,100...
Prepare a statement of cash flows using the indirect method. Show all work. [12] Lion Enterprises...
Prepare a statement of cash flows using the indirect method. Show all work. [12] Lion Enterprises Balance Sheet Income Statement 12/31/20 12/31/21 Year ended 12/31/2021 Cash 200 830 A/R 830 750 Inventory 600 640 Sales 7,500 Prepaid Insrn 20 50 Operating Expenses Equipment 1800 1500 Cost of Goods Sold $3,330 (Accum Depr) -600 -700 Depreciation Expense $240 TOTAL ASSETS 2850 3070 Insurance Expense 100 A/P 360 300 G & A Expenses $1,750 Accured Pyrll 400 300 Total Operating Expense $5,420...
Prepare a statement of cash flows using the indirect method. (please show all work/ calculations) 2017...
Prepare a statement of cash flows using the indirect method. (please show all work/ calculations) 2017 2016 Assets: Cash                200,000           70,000 Accounts receivable, net                  87,000           65,000 Inventory                  55,000           60,000 Property, plant & equipment                700,000         600,000 Accumulated depreciation              (100,000)         (60,000) Total Assets                942,000         735,000 Liabilities & Equity Accounts payable                  45,000           40,000 Accrued liabilities                  46,000           40,000 Common stock                460,000         460,000 Retained earnings                391,000         195,000                942,000         735,000 Sales            1,200,000 Cost of goods sold                650,000 Gross profit                550,000 Operating expenses                180,000 Pre-tax income                370,000...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT