Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 1.38E
Preparing the statement of
Bean Town Food Equipment Company had the following transactions for the month ending February 29, 2016. Bean Town’s cash balance on February 1, 2016, was $16,400.
Feb. 1 | Common stock was issued to stockholders for $7,500 cash. |
7 | Purchased equipment for $2,500 on account. |
14 | Paid $18,000 cash for land. |
17 | Paid cash expenses: employees’ salaries, $1,500; office rent, $1,800; utilities, $500. |
23 | Paid cash dividends of $3,000. |
26 | Earned service revenue for the month, $8,000, receiving cash. |
Prepare the statement of cash flows of Bean Town Food Equipment Company for the month ended February 29, 2016.
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Baker Company had the following balances in its accounting records as of December 31,2016:
Assets
Liabilities and Equity
Cash
$35,000
Accounts Payable
7,500
Accounts Receivable
9,000
Inventory
10,000
Common Stock
40,000
Land
41,000
Retained Earnings
47,500
Total
95,000
Total
95,000
The following accounting events apply to Baker Company’s 2017 fiscal year:
May
1
Made cash payment on accounts payable of $5,500.
June
1
Purchased $60,000 inventory on account.
August
1
Sold $31,000 worth of inventory for $56,000. The customer paid $22,000 in cash.
Nov.
1
Paid $51,000 owed to the supplier.
Dec.
31
Received cash collections from accounts receivable amounting to $36,000.
Incurred other operating expenses on account during the year that amounted to $8,000.
Record Journal entries for each transaction.
Prepare 2017’s Income Statement and Balance Sheet for Baker…
Bailey Co earns $27,792 of revenue on account and in $6,256 cash revenue transactions in Year 1. Cash collections of receivables amount to $7,152 in Year 1 with the remainder being collected in Year 2. Based on this information alone the company’s financial statements would show
Total Revenue in Year 1 of $_
Wolfe Inc.
Wolfe Inc. reports these account balances at January 1, 2016:
Retained Earnings
$ 49,000
Accounts Receivable
20,000
Accounts Payable
24,000
Capital Stock
185,000
Land
153,000
Cash
13,000
Equipment
20,000
Notes Payable
28,000
Buildings
80,000
See the account balances for Wolfe Inc.
On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable. In Wolfe’s trial balance prepared on January 31, 2016, the total of the credit column is:
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$287,000
$286,000
$275,000
Chapter 1 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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