EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 17, Problem 1DIE
To determine
Introduction: The
To classify: The given transactions by the type of cash flow activity.
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Use the following information to calculate the net
cash provided (inflow) or used by (outflow) from
financing activities for the Lulu Corporation:
(a) Net income, $10,000
(b) Sold common stock for $40,000 cash
(c) Paid cash dividend of $13,000
(d) Repayment of bond payable, $26,000
(e) Purchased equ
for $12,000 cash
(f) Issued long term mortgage notes payable for
$250,000 cash.
(Note: in the answer space, write only the
number, with no $ signs or commas. That is, if
your answer is $1,000, white it as : 1000 ).
Answer:
Rainey enterprises loaned $50,000 to Small Co. on
June 1, Year 1, for one year at 6% interest.
Rainey Enterprises loaned $50,000 to Small Co. on June 1, Year 1, for one year at 6 percent
interest.
Required
Show the effects of the following transactions in a horizontal statements. In the Cash Flow
column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a
financing activity (FA). For any element not affected by the event, leave the cell blank. (Not every
cell will require entry. Do not round intermediate calculations. Enter any decreases to account
balances and cash outflows with a minus sign. Round your answers to the nearest whole
dollar.)
(1) The loan to Small Co.
(2) The adjusting entry at December 31, Year 1.
(3) The adjusting entry and collection of the note on June 1, Year 2.
RAINEY ENTERPRISES
Horizontal Statements Model
Assets
Equity
Income Statenment
Statement of Cash
Flow
Date
Liabilinies
Notes
Receivable
Interest
Receivable
Retained…
Rainey Enterprises loaned $20,000 to Small Company on June 1, Year 1, for one year at 6 percent interest.
Required
Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate
whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the
event, leave the cell blank.
Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.
(1) The loan to Small Company
(2) The adjusting entry at December 31, Year 1.
(3) The adjusting entry and collection of the note on June 1, Year 2.
3.
Date
1.
6/1/Y1
2. 12/31/Y1
3. 6/1/72 (Adjusting entry)
6/1/Y2 (Collection of the note)
Cash
+
+
+
+
Assets
Notes
Receivable
+
+
+
+
+
RAINEY ENTERPRISES
Horizontal Statements Model
Balance Sheet
Interest
Receivable
=
Liabilities +
+
+
+
+
Stockholders'
Equity
Retained Earnings
Income Statement
Revenue -…
Chapter 17 Solutions
EBK ACCOUNTING PRINCIPLES
Ch. 17 - Prob. 1QCh. 17 - Prob. 2QCh. 17 - Prob. 3QCh. 17 - Prob. 4QCh. 17 - Prob. 5QCh. 17 - Prob. 6QCh. 17 - 7. Why is it necessary to use comparative balance...Ch. 17 - 8. Contrast the advantages and disadvantages of...Ch. 17 - Prob. 9QCh. 17 - Prob. 10Q
Ch. 17 - Prob. 11QCh. 17 - Prob. 12QCh. 17 - Prob. 13QCh. 17 - Prob. 14QCh. 17 - Prob. 15QCh. 17 - Prob. 16QCh. 17 - Prob. 17QCh. 17 - Prob. 18QCh. 17 - Prob. 19QCh. 17 - Prob. 20QCh. 17 - Prob. 21QCh. 17 - Prob. 22QCh. 17 - Prob. 1BECh. 17 - Prob. 2BECh. 17 - Prob. 3BECh. 17 - Prob. 4BECh. 17 - Prob. 5BECh. 17 - Prob. 6BECh. 17 - Prob. 7BECh. 17 - Prob. 8BECh. 17 - BE17-9 Hinck Corporation reported net cash...Ch. 17 - BE17-10 Suppose in a recent quarter, Alliance...Ch. 17 - BE17-11 The management of Morrow Inc. is trying to...Ch. 17 - BE17-12 Suppose Columbia Sportswear Company had...Ch. 17 - Prob. 13BECh. 17 - Prob. 14BECh. 17 - Prob. 1DIECh. 17 - Prob. 2aDIECh. 17 - Prob. 2bDIECh. 17 - Prob. 3DIECh. 17 - Prob. 1ECh. 17 - E17-2 An analysis of comparative balance sheets,...Ch. 17 - Prob. 3ECh. 17 - Prob. 4ECh. 17 - Prob. 5ECh. 17 - Prob. 6ECh. 17 - Prob. 7ECh. 17 - Prob. 8ECh. 17 - Prob. 9ECh. 17 - Prob. 10ECh. 17 - Prob. 11ECh. 17 - E17-11 Suppose a recent income statement for...Ch. 17 - Prob. 13ECh. 17 - Prob. 14ECh. 17 - Prob. 1PSACh. 17 - Prob. 2PSACh. 17 - Prob. 3PSACh. 17 - Prob. 4PSACh. 17 - Prob. 5PSACh. 17 - Prob. 6PSACh. 17 - Prob. 7PSACh. 17 - P17-8A Data for Nosker Company are presented in...Ch. 17 - Prob. 9PSACh. 17 - Prob. 10PSACh. 17 - Prob. 11PSACh. 17 - Prob. 17CCCh. 17 - Prob. 2EYCTCh. 17 - Prob. 3EYCTCh. 17 - Prob. 4EYCTCh. 17 - Prob. 5EYCTCh. 17 - Prob. 7EYCTCh. 17 - Prob. 1ISTQCh. 17 - Prob. 2ISTQCh. 17 - Prob. 3ISTQCh. 17 - Prob. 4ISTQCh. 17 - Prob. 5ISTQCh. 17 - Prob. 1IFRECh. 17 - Prob. 2IFRECh. 17 - Prob. 3IFRP
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- State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $290,000 of bonds, on which there was $2,900 of unamortized discount, for $302,000. b. Sold 12,000 shares of $25 par common stock for $57 per share. c. Sold equipment with a book value of $49,400 for $71,100. d. Purchased land for $327,000 cash. e. Purchased a building by paying $49,000 cash and issuing a $90,000 mortgage note payable. f. Sold a new issue of $260,000 of bonds at 98. g. Purchased 4,500 shares of $40 par common stock as treasury stock at $73 per share. h. Paid dividends of $1.90 per share. There were 20,000 shares issued and 3,000 shares of treasury stock. Effect Amount а. b. Cash payment C. $4 Cash receipt d. е. f. $ g. 2$ h. $4arrow_forwardState the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:a. Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000.b. Sold 20,000 shares of $5 par common stock for $22 per share.c. Sold equipment with a book value of $55,800 for $60,000.d. Purchased land for $650,000 cash.e. Purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable.f. Sold a new issue of $500,000 of bonds at 98.g. Purchased 10,000 shares of $40 par common stock as treasury stock at $50 per share.h. Paid dividends of $1.50 per share. There were 1,000,000 shares issued and 120,000 shares of treasury stock.arrow_forwardState the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000.b. Sold 7,000 shares of $30 par common stock for $53 per share.c. Sold equipment with a book value of $59,700 for $86,000.d. Purchased land for $339,000 cash.e. Purchased a building by paying $64,000 cash and issuing a $90,000 mortgage note payable.f. Sold a new issue of $300,000 of bonds at 97.g. Purchased 3,600 shares of $20 par common stock as treasury stock at $37 per share.h. Paid dividends of $1.90 per share. There were 24,000 shares issued and 4,000 shares of treasury stock.arrow_forward
- Rainey Enterprises loaned $45,000 to Small Company on June 1, Year 1, for one year at 7 percent interest. Required Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. (1) The loan to Small Company (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2.arrow_forwardAssume the following excerpts from a company's balance sheet: Property, plant, and equipment Long-term investments Beginning Balance Ending Balance $ 3,500,000 $ 1,100,000 $ 3,750,000 $ 950,000 During the year, the company did not purchase any property, plant, and equipment. It sold equipment that had accumulated depreciation of $150,000 for a loss of $20,000. The company did not sell any long-term investments during the period. Based solely on the information provided, the company's net cash provided by (used in) investing activities would be:arrow_forwardRenaldo Cross Company paid $2,000 interest on short-term notes payable, $10,000 principal of long-term bonds, and $6,000 in dividends on its common stock. Renaldo Cross Company would report cash outflows from activities, as follows: Multiple Choice Operating, $0; investing, $10,000; financing, $8,000. Operating, $0; investing, $0; financing, $18,000. Operating, $2,000; investing, $10,000; financing, $6,000. Operating, $2,000; investing, $0; financing, $16,000. 身arrow_forward
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