Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1) issued stock for $70,000 2) borrowed $55,000 from its bank 3) provided consulting services for $68,000 4) paid back $30,000 of the bank loan 5) paid rent expense for $16,500 6) purchased equipment costing $27,000 7) paid $4,500 dividends to stockholders 8) paid employees' salaries for work completed during the year, $36,000 What is Yowell's net income? Multiple Choice $34,500 $15,500
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- A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under a.financing activities. b.operating activities. c.noncash investing and financing activities. d.investing activities. On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 × 8% × 1/2), receiving cash of $884,177. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210…Riley Company borrowed $40,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 7% annual interest rate. Riley earned cash revenue of $1,060 in Year 1 and $1,500 in Year 2 Assume no other transactions. The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be: Multiple Choice . . $800 inflow $1,300 outflow $40,800 outflow $1,500 inflowA corporation had $24,000 of cash at the beginning of the year. During the year, it had sales on account of $21,000 and cash receipts of $25,000 during the year. At the end of the year, it had $33,000 of cash. What was the corporation's cash disbursements for the year? O $24,000 O $12,000 O $28,000 O $18,000 O $16,000
- Moore Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows: Paid cash of $12,700 to retire bonds payable with a face value of $15,000 and a book value of $13,300. Paid cash of $48,000 to retire bonds payable with a face value of $45,000 and a book value of $47,000. Required: Record, in journal entry form, the entries that Moore would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not require an entry, leave it blank.The management team of Wickersham Brothers Incorporated is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized. Other information from the company’s records includes the following: Bought equipment for cash, $92,000. Paid $17,000 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $29,100 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income tax expense ($20,710) and interest expense ($5,100) were paid in full at the end of both years and are included in Other Expenses. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures. (Enter any deductions and cash outflows as a negative value.) (The options to go in each box are the following Additions to property, plant, and equipment Cash Balance, December 31…XYZ Company used the direct method to prepare the statement of cash flows. The entity had the following cash flows during 2021: January 1 cash balance 1,000,000 Cash receipts from issuance of ordinary shares 1,208,000 Cash receipts from customers 1,640,000 Proceeds from sale of treasury shares (cost – P720,000) 800,000 Cash receipts from dividends on long-term investments 80,000 Cash receipts from repayment of loan made to another company 640,000 Cash payments to suppliers 1,080,000 Cash paid to redeem own shares 1,200,000 Cash paid for interest on long-term notes 120,000 Cash payments for operating expenses 320,000 Cash payments for dividends 200,000 Cash payment for income taxes 144,000 Cash paid to purchase land 1,040,000 Required: Prepare statement of cash flows at December 31, 2021.
- Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company’saccountant obtains the necessary information to prepare accrual basis financial statements. The following cashflows occurred during the year ended December 31, 2018:Cash receipts:From customers $675,000Interest on note 4,000Loan from a local bank 100,000Total cash receipts $779,000Cash disbursements:Purchase of merchandise $390,000Annual insurance payment 6,000Payment of salaries and wages 210,000Dividends paid to shareholders 10,000Annual rent payment 24,000Total cash disbursements $640,000Selected balance sheet information:12/31/17 12/31/18Cash $ 25,000 $164,000Accounts receivable 62,000 92,000Inventory 80,000 62,000Prepaid insurance 2,500 ?Prepaid rent 11,000 ?Interest receivable 3,000 ?Note receivable 50,000 50,000Equipment 100,000 100,000Accumulated depreciation—equipment (40,000) (50,000)Accounts payable (for merchandise) 110,000 122,000Salaries and wages payable 20,000…Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $21,000 cash deposit in checking account. $56,000 bond investment due in 20 years. • $14,000 U.S. Treasury bill due in 1 month. $1,100, 3-year loan to an employee. $4,600 of currency and coins. $1,400 of accounts receivable. Included in Cash and Cash and Cash Amount Cash Equivalents Amount Equivalents? Checking account 21,000 Bond investment 56,000 U.S. Treasury bill 14,000 Loan to an employee 1,100 Currency and coins 4,600 Accounts receivable 1,400 Total Cash and cash equivalents 24The following summary transactions occurred during the year for Daisy. Cash received from: Collections from customers $386,000 Interest on notes receivable 9,000 Collection of notes receivable 56, 000 Sale of investments 33,000 Issuance of notes payable 106,000 Cash paid for: Purchase of inventory 166, 000 Interest on notes payable 8,000 Purchase of equipment 91,000 Salaries to employees 96,000 Payment of notes payable 28,000 Dividends to shareholders 1,000 Required: Calculate net cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)
- Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities; and prepare the Statement of Cash Flow for Cougar Corp. using the following data: Cash at the beginning of the year: $650,000 Cash Receipts from: Bank (Interest on CD) $6,000 Customers Sales $872,000 Interest $33,000 Dividends $3,600 Cash payments for: Dividends $2,500 Raw Materials $ 3,800 Wages Expense $4,000 Land $10,000 Interest $4,000Scan House, Inc. prepares financial records during the year on a cash basis. As the newly appointed controller, you have been asked to prepare the annual financial statement on an accrual basis. The following cash flows occurred during the year ended December 31, 2020: Cash receipts:From customers $765,000Interest on note 3,000Loan from a local bank 200,000Total cash receipts $968,000Cash disbursements:Purchase of merchandise $450,000Annual insurance payment 12,000Payment of salaries and wages 250,000Dividends paid to shareholders 25,000Annual rent payment 36,000Total cash disbursements $773,000 Selected balance sheet information: 12/31/19 12/31/20Cash $25,000 $220,000Accounts receivable 62,000 115,000Inventory 80,000 50,000Prepaid insurance 2,500…12. Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company’s accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021: Cash receipts: From customers $ 670,000 Interest on note 3,920 Loan from a local bank 105,000 Total cash receipts $ 778,920 Cash disbursements: Purchase of merchandise $ 389,000 Annual insurance payment 5,880 Payment of salaries 209,000 Dividends paid to shareholders 12,000 Annual rent payment 23,500 Total cash disbursements $ 639,380 Selected balance sheet information: 12/31/2020 12/31/2021 Cash $ 24,500 $ 164,040 Accounts receivable 61,500 91,000 Inventory 79,000 61,500 Prepaid insurance 2,400 ? Prepaid rent 10,900 ? Interest receivable 2,940 ? Note receivable 49,000 49,000…