plies toN.]organizeder 3, thei assets toember 31,the$ 15,20012,410 Consulting revenue1,77046,080 Salaries expense16,450 Telephone expense6,060 Miscellaneous expenses82,650Cash withdrawals by owner$ 46012,4102,1405,300Rent expense750560e a DecemberIG Required information[The following information applies tothe questions displayed below.]On December 1, Jasmin Ernst organizedErnst Consulting. On December 3, theowner contributed $82,650 in assets tolaunch the business. On December 31,the company's records show thefollowing items and amounts.$ 15,200 Cash wit12,410 Consulti1,770 Rent exp46,080 Salaries16,450 Telephon6,060 Miscella82,650CashAccounts receivableOffice suppliesLandOffice equipmentAccounts payableOwner investmentsUsing the above information prepare a Decemberincome statement for the business.ERNST CONSULTINGIncome Statement

Name: plies toN.]organizeder 3, thei assets toember 31,the$ 15,20012,410 Co
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Description: plies toN.]organizeder 3, thei assets toember 31,the$ 15,20012,410 Consulting revenue1,77046,080 Salaries expense16,450 Telephone expense6,060 Miscellaneous expenses82,650Cash withdrawals by owner$ 46012,4102,1405,300Rent expense750560e a DecemberIG

Net income = Total revenue - Total expenses

Business

Accounting

plies to N.] organized er 3, the i assets to ember 31, the $ 15,200 12,410 Consulting revenue 1,770 46,080 Salaries expense 16,450 Telephone expense 6,060 Miscellaneous expenses 82,650 Cash withdrawals by owner $ 460 12,410 2,140 5,300 Rent expense 750 560 e a December

plies to N.] organized er 3, the i assets to ember 31, the $ 15,200 12,410 Consulting revenue 1,770 46,080 Salaries expense 16,450 Telephone expense 6,060 Miscellaneous expenses 82,650 Cash withdrawals by owner $ 460 12,410 2,140 5,300 Rent expense 750 560 e a December

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 38E: Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Use the following information for the next two questions:The following relates to the transactions of GRIMACE FROWN Co. during 20x1:Directors' and officers' remuneration 8,000,000Post-employment benefits of officers 800,000Fringe benefits in the form of housing assistance to directors and officers 20,000,000Share options granted to officers 1,200,000Officers' expenses on travels, representation and entertainment subject to liquidation and reimbursement 400,000Loans to directors and officers 12,000,000Sales to related entities 40,000,000 A. How much is the amount of related party disclosures on GRIMACE’s separate financial statements?a. 30,000,000 b. 52,000,000 c. 82,000,000 d. 42,000,000 B. How much is the amount of related party disclosures on GRIMACE’s consolidated financial statements?a. 12,000,000 b. 30,000,000 c. 82,000,000 d. 42,000,000
On May 1, 20x1, the statement of financial position of Juan and Pablo appear below:Juan PabloCash 22,000 44,708Accounts receivable 469,072 1,135,780Inventories 240,070 520,204Land 1,206,000Building 856,534Furniture and fixtures 100,690 69,578Other assets 4,000 7,200Total assets 2,041,832 2,634,004Accounts payable 357,880 487,300Notes payable 400,000 690,000Juan, Capital 1,283,952Pablo, Capital 1,456,704Total liabilities and equity 2,041,832 2,634,004Juan and Pablo agreed to form a partnership contributing their respective assets and equities subject to thefollowing adjustments:a. Accounts receivable of P40,000 in Juan’s books and P70,000 in Pablo’s books are uncollectible.b. Inventories of P11,000 and P13,400 are worthless in Juan’s and Pablo’s respective books.c. Other assets of P4,000 and P7,200 in Juan’s and Pablo’s respective books are to be written off.Required:1. What are the adjusted capital balances of the partners after formation? 2. Pedro offered to join for a 20% interest in…
On May 1, 20x1, the statement of financial position of Juan and Pablo appear below:Juan PabloCash 22,000 44,708Accounts receivable 469,072 1,135,780Inventories 240,070 520,204Land 1,206,000Building 856,534Furniture and fixtures 100,690 69,578Other assets 4,000 7,200Total assets 2,041,832 2,634,004Accounts payable 357,880 487,300Notes payable 400,000 690,000Juan, Capital 1,283,952Pablo, Capital 1,456,704Total liabilities and equity 2,041,832 2,634,004Juan and Pablo agreed to form a partnership contributing their respective assets and equities subject to thefollowing adjustments:a. Accounts receivable of P40,000 in Juan’s books and P70,000 in Pablo’s books are uncollectible.b. Inventories of P11,000 and P13,400 are worthless in Juan’s and Pablo’s respective books.c. Other assets of P4,000 and P7,200 in Juan’s and Pablo’s respective books are to be written off. 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000.…
Required: post entries to the relevant accounts in the general ledger and balance the accounts: On 1/1/2023, Jassim started his commercial business with a capital of $3,735,000 distributed over the following assets: 1500,000 cash, 700,000 cars, 350,000 goods, 1,185,000 bank, If you know that the following operations took place during January 2023: 1. On 1/3 he bought a building for $950,000 by check, and the costs of registering it amounted to $5200 and the expenses of preparing it for use amounted to $43000, which I paid in cash. 2. On 9/1 he sold his goods on account to Mahmoud for $280,000. 3. On 1/10, he bought goods from Daoud for $324,000, he paid half of them in cash, and wrote the rest as a promissory note due after two months. He also paid the costs of transporting the purchased goods, amounting to $1,800. 4. On 1/12 he sold his goods to Al-Tafa'il stores for the amount of $198,000 in cash, of which $65,000 was deposited in the bank. 5. On 1/15, he sold the most valuable car…
ces Required information [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,780 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $ 8,990 16,540 3,930 45,980 18,660 9,170 84,780 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses ERNST CONSULTING Statement of Retained Earnings Using the above information prepare an October statement of retained earnings for Ernst Consulting. $ 2,830 16,540 4,300 7,740 850 670 S
At the start of the year, the balance on Sara's capital account was $55,689. During the year Sara made drawings of S16,600 and the net profit for the year was $17500. What is the balance on Sara's capital account at the end of the year? OA S56.589 B. $30,069 OC $4,789 O D. $62,189
B. Mr. Abdullah formed Al-Noor Enterprises on February 2021. During the month, the following financial transactions occurred: Review and find the mistake of the following transactions which is recorded in general journal and rewrite them. 2021, February 10 Paid the month's rent OR 700 16 Withdrew OR 10,000 for personal use. 23 Collected OR 9,000 from Bahwan Company. 28 Sold goods for cash - OMR 15,000 Al-Noor Enterprises for January Date Particulars Ref. Debit Credit 2020 Feb. 11 Rent Expense 700 Cash 700 16 Abdullah, Withdrawal 10,000 Expense 10,000 10,000 Cash Accounts Payable 23 10,000 30 Sales 15,000 Cash 15,000
Following are some transactions and events of Business Solutions. Feb. 26 The company paid cash to Lyn Addie for eight days' work at $130 per day. Mar. 25 The company sold merchandise with a $2,200 cost for $2,900 on credit to Wildcat Services, invoice dated March 25. Required:1. Assume that Lyn Addie is an unmarried employee. Her $1,040 of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $104. Compute her net pay for the eight days' work paid on February 26. (Round your answer to 2 decimal places. Do not round intermediate calculations.)2. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. (Round your answers to 2 decimal places. Do not round intermediate calculations.)3. Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits…
Assignment Questions: The following entries are in the books of Ali Co. for the month of May,2021: 10th May Establish the business with a capital of 200,000. Purchase Goods costed 10,000. 12th May 13th May Sold goods for 3,000 on account. 17th May Purchase Machine costed 20,000 on account 18th May Withdraw an amount of 50,000 for personal use. 19th May : Received 3,000 from the client for goods sold on 13th May. 20th May Bought computer for 3,000. 21th May Paid 2,000 for Machine purchased. 22th May Paid 5,000 for the goods purchased on 12th May. 23th May Sold goods for 5,000. Write (1)Journal Entries, (2)ledgers and (3)Trial balance for the transactions.
Illustration: Roth Contractor Corporation was incorporated on December 1, 2019 and had following transactions during December 1 Dec Issued Capital for 5000 cash 3 Dec Paid 1200 cash for three months rent in advance 4 Dec Purchased a used truck for 10,000 on credit 4 Dec Purchased Supplies of 1000 on credit 6 Dec Paid 1800 for a one-year truck insurance policy 7 Dec Billed a customer 4500 for work completed to date 8 Dec Collected 800 for work completed to date 12 Dec Paid the following expense in cash Advertisement 350  Interest 100  Telephone 75  truck operating 425 Wages 2500 15 Dec Collected 2000 of the amount billed on 7 dec 18 Dec Billed Customer 6500 for work completed to date 19 Dec Signed a 9000 contract for work to be performed in Jan 2017 22 Dec Paid the following Expenses Advertisement 200  Interest 150 Truck Operating 375 Wages 2500 27 Dec Collected advance on work to be done in January 28 Dec Received a bill for 100 for electricity used during the…
Required information [The following information applies to the questions displayed below.] Gibson Company began operations on January 1, year 1, by issuing common stock for $35,000 cash. During year 1, Gibson received $63,200 cash from revenue and incurred costs that required $51,200 of cash payments. Prepare a GAAP-based income statement and balance sheet for Gibson Company for year 1 under the following scenario: b. Gibson is in the car rental business. The $51,200 was paid to purchase automobiles. The automobiles were purchased on January 1, year 1, and have four-year useful lives, with no expected salvage value. Gibson uses straight-line depreciation. The revenue was generated by leasing the automobiles. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an Income Statement. GIBSON COMPANY Income Statement for Year 1 Income Statement Balance Sheet >