Please introduction and correct and incorrect option explain! E2-6 (Algo) Recording Investing and Financing Activities LO2-4The following events occurred for Johnson Company:a. Received investment of cash by organizers and distributed to them 1,070 shares of $1 par value common stock with a markeprice of $40 per share.b. Leased $8,400 of equipment, paying $1,500 in cash and signing a long-term right-of-use lease for the rest owed.c. Borrowed $13,000 cash from a bank.d. Loaned $900 to an employee who signed a note due in six months.e. Purchased $24,000 of land; paid $7,000 in cash and signed a note for the balance.Required:Prepare journal entries for the above transactions.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listJournal entry worksheet12345Record the receipt of cash and the distribution of 1,070 shares of $1 par valuecommon stock with a market price of $40 per shareNote: Enter debits before credits.Transactiona.General JournalDebitCredit

Let's break down the journal entry for transaction (a) in detail:Transaction (a) involves the…

Answered: E2-6 (Algo) Recording Investing and…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.24MCE

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Based on the following information,. Purchase of investments $ 434 Dividends paid 278 Interest paid 69 Additional borrowing from bank 565 The cash flows from financing activities under GAAP would $______
on An analysis of Forest Hills Corporation's Investment in Marketable Securities account disclosed the following: Debit entries $ 160,000 Credit entries 240,000 Forest Hill's income statement included a $40,000 gain on sale of marketable securities and $30,000 dividend income from marketable securities. All payments and proceeds relating to marketable securities transactions were in cash. The amount of cash paid by Forest Hills Corporation in for the purchase of marketable securities was: Select one: O a. $200,000 O b. $190,000 O c. $160,000 O d. $240.000
9. It is an investment certified by a certificate with a holding period of at least 30 days. yunsup obio oimono ods no 1ols on .d a. stock b. bonds owing results are onfar C. savings account d. time deposit 10. It is a long-term obligation issued by a public or private corporation to raise money for the purpose of expansion, capital expenditures, or payoff obligation. gnblasd basilnuns 2xodbol d a. stock b. bondsnnd rh dyuod 1sab or borb s nol 25alsi ai 1ers omin lo nnoms ods ai l roh lism C. savings account gnineso d. time deposit off covilob b 2soll gnizessongd
Problem 2 You are the controller for 21" Century Technologies. Your staff has prepared an income statement for the current year and has developed the following additional information by analyzing changes in the company's balance sheet accounts. 21 Century Technologies Income Statement For the year ended December 31, 2009 Revenue: Net Sales Interest Revenue Gain on sales of marketable securities Costs and expenses: Costs of goods sold Operating expenses (including depreciation of $225 000) Interest expense Income tax expense Loss on sales of plant assets Net Income 4,800,000 60,000 $1,000 2,430,000 1,860,000 63,000 150,000 18,000 390,000 Additional information: 1. Accounts receivable increased by $90 000 2. Accrued interest receivable decreased by $3 000 3. Inventory decreased by $90 000 and accounts payable to suppliers of merchandise decreased by $24 000 4. Short-term prepayments of operating expenses increased by $9 000 and accrued liabilities for operating expenses decreased by $12…
Using the data given below, compute for the total amount of items that meet the definition of financial asset Cash P 100,000 Investment in shares – FVTPL 500,000 Investment in associate 2,000,000 Accounts receivable 1,000,000 Inventories 800,000 Prepaid rent 50,000 Interest rate swap receivable 200,000 Investment in debt securities – FVTOCI 400,000 Investment in debt securities – AC 300,000 Land 2,000,000 Buildings 3,000,000 Machinery and equipment 1,500,000 Patents 250,000
1. Cash paid to purchase long-term investments would be reported in the statement of cash flows in a.the cash flows from financing activities section. b.the cash flows from investing activities section. c.a separate schedule. d.the cash flows from operating activities section. 2. On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount/premium using the straight-line method. Round answers to the nearest dollar. If an amount box does not require an entry, leave it blank or enter "0".
Statement of Financial Position as at 31 December 2008 RM 000 Current Liabilities: (15,000) Creditors Proposed Dividends Net Assets Fixed Assets: 17,300 70,500 5,000 (2,000) Fixtures and Fittings (NBV) Equipment Motor Vehicles 156,800 20,500 Intangible Assets Financed by: Capital Reserve 100,000 50,800 6,000 Current Assets: 28,000 Long Term Loan Cash at Bank Stock Debtors 9,000 23,500 156.800 At the end of the year, you have been informed of the following additional information: Palestinian Islamic bank has borrowed through short term financing facilities from a local bank on the 1st April 2008 to buy machinery equipment amounting to RM12,000,000. This amount has already been included as part of the debtors in the Statement of Financial Position. Part of the stocks in the above Statement is stock of goods for sales (Finish foods) valued at RM500,000 • One of the debtors in the above Statement is a non-trade debtor and the amount due is RM1,000,000. Required: Determine the zakatable…
An analysis of R Corporation's Investment in Marketable Securities account during 20x6 disclosed the following: Debit Entries P175,000 Credit Entries P245,000 The company's come statement included a P35,000 gain on sale of marketable securities and P20,000 dividend income from marketable securities. All payments and proceeds relating to marketable securities transactions were in cash. 1. Cash Paid for the purchase of marketable securities 2. Cash proceeds recerved for the sale of marketable securities 3. Cash flow from operating activities 4. Cash flow from investing activities. Usc negative sign if your answer is net cash used.
according to information: Question Liabilities OMR Assets OMR Equity share capital 27,800 Furniture 4,000 Accounts Payable 1,550 Cash in hand 4,500 Reserves and surplus 2,550 Bills receivables 3,750 Bills payable 950 Land 9,000 Long term borrowings 6,520 Marketable securities 850 Outstanding Salaries 850 Cash in bank 5,250 Loan from Bank 3,450 Building 6,600 Preference share capital 5,265 Prepaid expenses 850 Bank overdraft 825 Cars & Trucks 3,350 Tax outstanding 590 Account Receivables 1,150 Inventory 2,150 Income earned but not received 430 Machinery 6,250 Equipment 2,220 Total 50,350 Total 50,350 Other information Particulars OMR Sales 330,000 Cost of goods sold 155,000 Administration expenses 33,000 Selling & Distribution exp. 44,000 Interest received…
Grand Company reported the following accounts at the end of reporting period; Petty cash fund 10 000 Payroll fund 100 000 Sinking fund cash 500 000 Sinking fund securities 1 000 000 Accrued interest receivable – sinking fund Securities 50 000 Plant expansion fund 600 000 Cash render value 150 000 Investment in property…
Data pertaining to the current position of Lucroy Industries Inc. follow:Cash $ 800,000Marketable securities 550,000Accounts and notes receivable (net) 850,000Inventories 700,000Prepaid expenses 300,000Accounts payable 1,200,000Notes payable (short-term) 700,000Accrued expenses 100,000Instructions1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios in parts b through j to one decimal place.2. List the following captions on a sheet of paper:Transaction Working Capital Current Ratio Quick RatioCompute the working capital, the current ratio, and the quick ratio after each of the…
Using the data given below, compute for the total amount of items that meet the definition of financial asset Cash P 100,000 Fair value through profit or loss securities 500,000 Investment in associate 2,000,000 Trade receivable 1,000,000 Inventories 800,000 Prepaid insurance 50,000 Interest rate swap receivable 200,000 Investment in debt securities – FVTOCI 400,000 Investment in debt securities – AC 350,000 Land 2,000,000 Buildings 3,000,000 Machinery and equipment 1,500,000 Patents 250,000

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