Make into T accounts Date Account A/c Debit Account A/c Credit Comments 1-Jul Cash $60,000 Common stock $60,000 Deposit for shares 3-Jul Rent expense $3,500 Cash $3,500 Rent paid 5-Jul Prepaid insurance $4,200 Cash $4,200 Insurance paid 7-Jul Supplies $1,000 Accounts payable $1,000 Supplies purchased 10-Jul Salaries expense $3,500 Cash $3,500 Salaries paid 14-Jul Equipment $10,000 Cash & A/c payable $10,000 Equipment purchased 15-Jul Cash $8,000 Tax preparation revenue $8,000 Tax preparation income received 19-Jul Accounts payable $500 Cash $500 A/c payable paid 31-Jul Cash $9,000 Tax preparation revenue $9,000 Tax preparation income received 31-Jul Dividends $600 Cash $600 Dividends paid

The August bank statement and cash T-account for Martha Company follow:   BANK STATEMENT Date Checks Deposits Other Balance August 1         $ 13,170 August 2 $ 100       13,070 August 3   $ 9,000     22,070 August 4 200       21,870 August 5 150       21,720 August 9 490       21,230 August 10 110       21,120 August 15   3,000     24,120 August 21 200       23,920 August 24 14,900       9,020 August 25   5,500     14,520 August 30 600       13,920 August 30     Interest earned $ 20 13,940 August 31     Service charge 10 13,930   Cash (A) Debit Credit August 1 Balance 13,170     Deposits   Checks written   August 2 9,000 100 August 1 August 12 3,000 200 August 2 August 24 5,500 150 August 3 August 31 4,000 110 August 4     490 August 5     190 August 15     250 August 17     600 August 18     200 August 19     14,900 August 23 August 31 Balance 17,480       No deposits were in transit and no checks were…

Item Prior year Current year Accounts payable 8,109.00 7,758.00 Accounts receivable 6,059.00 6,782.00 Accruals 1,036.00 1,609.00 Cash ??? ??? Common Stock 11,891.00 11,189.00 COGS 12,683.00 18,018.00 Current portion long-term debt 4,980.00 4,993.00 Depreciation expense 2,500 2,813.00 Interest expense 733 417 Inventories 4,192.00 4,777.00 Long-term debt 13,329.00 13,523.00 Net fixed assets 50,636.00 54,376.00 Notes payable 4,329.00 9,999.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,278.00 29,801.00 Sales 35,119 47,221.00 Taxes 2,084 2,775 What is the firm's total change in cash from the prior year to the current year?

Item Prior year Current year Accounts payable 8,194.00 7,893.00 Accounts receivable 6,066.00 6,786.00 Accruals 977.00 1,572.00 Cash ??? ??? Common Stock 11,869.00 12,264.00 COGS 12,616.00 18,108.00 Current portion long-term debt 5,038.00 5,064.00 Depreciation expense 2,500 2,825.00 Interest expense 733 417 Inventories 4,145.00 4,778.00 Long-term debt 13,680.00 14,055.00 Net fixed assets 50,966.00 54,551.00 Notes payable 4,331.00 9,956.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,104.00 29,983.00 Sales 35,119 45,456.00 Taxes 2,084 2,775 What is the firm's net income in the current year?       . .

Item Prior year Current year Accounts payable 8,109.00 7,758.00 Accounts receivable 6,059.00 6,782.00 Accruals 1,036.00 1,609.00 Cash ??? ??? Common Stock 11,891.00 11,189.00 COGS 12,683.00 18,018.00 Current portion long-term debt 4,980.00 4,993.00 Depreciation expense 2,500 2,813.00 Interest expense 733 417 Inventories 4,192.00 4,777.00 Long-term debt 13,329.00 13,523.00 Net fixed assets 50,636.00 54,376.00 Notes payable 4,329.00 9,999.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,278.00 29,801.00 Sales 35,119 47,221.00 Taxes 2,084 2,775 What is the firm's cash flow from investing?

Recording Note Transactions The following information is extracted from Tara Corporation’s accounting records: May 1 Received a $6,000, 12%, 90-day note from V. Leigh, a customer. May 6 Received a $9,000, 10%, 120-day note from C. Gable, a customer. May 11 Sold the Leigh and Gable notes with recourse at the bank at 13%. In addition, borrowed $10,000 from the bank for 90 days at 12%. The bank remits the face value less the interest. The estimated recourse liability for Leigh and Gable is $84 and $110, respectively. July 31 The July bank statement indicated that the Leigh note had been paid. Aug. 10 Repaid the $10,000 borrowed on May 11. Sept. 4 Received notice that Gable had defaulted on the May 6 note. The bank charged a fee of $10. Paid the amount due on the Gable note to the bank. Informed Gable to pay Tara the entire amount due plus 11% interest on the total of the face amount of the note, the accrued interest, and the fee from the maturity date until Gable remits the amount owed.…

Required information Skip to question   [The following information applies to the questions displayed below.]The August bank statement and cash T-account for Martha Company follow:   BANK STATEMENT Date Checks Deposits Other Balance August 1         $ 13,600 August 2 $ 120       13,480 August 3   $ 9,300     22,780 August 4 220       22,560 August 5 160       22,400 August 9 530       21,870 August 10 130       21,740 August 15   3,100     24,840 August 21 220       24,620 August 24 15,500       9,120 August 25   5,650     14,770 August 30 620       14,150 August 30     Interest earned $ 20 14,170 August 31     Service charge 10 14,160   Cash (A) Debit Credit August 1 Balance 13,600     Deposits   Checks written   August 2 9,300 120 August 1 August 12 3,100 220 August 2 August 24 5,650 160 August 3 August 31 4,100 130 August 4     530 August 5     200 August 15     280 August 17     620 August 18     220 August 19…