Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 16E
a.
To determine
Show the effects of the advance payments and revenue recognition on the financial statements for the year 2018 using horizontal statements model.
b.
To determine
Identify the amount of revenue that would be recognized for the year 2019.
c.
To determine
Identify the amount of cash flow from operating activities in year 2019.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Preparation of SCF for a Single Proprietorship
Instructions:
Prepare a Statement of Cash Flows for the year ended December 31,2020 the using the following account titles listed.
Use the Direct Method.
You may use any desired business name.
Use the space provided for your answer.
Cash from Clients – 450,000
Cash Payment for merchandise – 410,500
Cash receipt from additional investment of owner – 114,450
Cash receipt from sale of equipment - 15,000
Cash withdrawal by the owner – 80,000
Cash, January 1, 2020 - 120,000
Credit sales – 35,000
Depreciation expense – 15,410
Paid loan from a bank - 111,000
Payment to interest expense – 10,000
Payment to suppliers – 20,000
Payment to utilities – 30,000
Payments to Employees – 14,800
View Policies
Current Attempt in Progress
Sheridan Inc. owns these assets at the statement of financial position date:
Cash in bank (savings account)
$20,240
Cash on hand
1,540
Prepaid insurance
1.840
Cash in bank (chequing account)
12,880
Postdated cheques received from customers
920
(a)
What amount should be reported as cash and cash equivalents in the statement of financial position?
Cash
$
eTextbook and Media
Save for Later
Attempts: 0 of 3 used
Submit Answer
Problem 1
1. The amount Hoover should report as cash on the statement of financial position as of December 31, 2021 should be:
Problem 2. What is the cash balance per books at April 30, 2021?
Chapter 2 Solutions
Survey Of Accounting
Ch. 2 - 1. What does accrual accounting attempt to...Ch. 2 - 2. Define recognition. How is it independent of...Ch. 2 - 3. What does the term deferral mean?Ch. 2 - 4. If cash is collected in advance of performing...Ch. 2 - Prob. 5QCh. 2 - 6. What effect does the issue of common stock have...Ch. 2 - 7. How does the recognition of revenue on account...Ch. 2 - 8. Give an example of an asset source transaction....Ch. 2 - 9. When is revenue recognized under accrual...Ch. 2 - 10. Give an example of an asset exchange...
Ch. 2 - 11. What is the effect on the right side of the...Ch. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - 17. Why may net cash flow from operating...Ch. 2 - Prob. 18QCh. 2 - Prob. 19QCh. 2 - 20. What is the difference between a cost and an...Ch. 2 - Prob. 21QCh. 2 - Prob. 22QCh. 2 - 23. What does the term expense mean?Ch. 2 - Prob. 24QCh. 2 - 25. What is the purpose of the statement of...Ch. 2 - Prob. 26QCh. 2 - 27. Why is the balance sheet dated as of a...Ch. 2 - 28. In what order are assets listed on the balance...Ch. 2 - Prob. 29QCh. 2 - Prob. 30QCh. 2 - 31. What types of accounts are closed at the end...Ch. 2 - 32. Give several examples of period costs.Ch. 2 - 33. Give an example of a cost that can be directly...Ch. 2 - Prob. 34QCh. 2 - Prob. 1ECh. 2 - Exercise 2-2 Effect of accrued expenses on the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Exercise 2-9 Supplies on financial statements Yard...Ch. 2 - Prob. 10ECh. 2 - Exercise 2-11 Prepaid items on financial...Ch. 2 - Exercise 2-12 Effect of an error on financial...Ch. 2 - Exercise 2-13 Unearned items on financial...Ch. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Exercise 2-21 Adjusting the accounts Norell Inc....Ch. 2 - Prob. 22ECh. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 25ECh. 2 - Prob. 26ECh. 2 - Exercise 2-27 Identifying transaction type and...Ch. 2 - Exercise 2-27A Effect of accounting events on the...Ch. 2 - Prob. 29ECh. 2 - Exercise 2-29A Identifying source, use, and...Ch. 2 - Prob. 31ECh. 2 - Problem 2-32 Recording events in a horizontal...Ch. 2 - Problem 2-37A Effect of adjusting entries on the...Ch. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Problem 2-36 Identifying and arranging elements on...Ch. 2 - Problem 2-37 Missing information in financial...Ch. 2 - Problem 2-38 Events for two complete accounting...Ch. 2 - Prob. 1ATCCh. 2 - ATC 2-3 Research Assignment Identifying accruals...Ch. 2 - ATC 2-4 Writing Assignment Revenue Recognition and...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Exercise 1-50 Statement of Cash Flows OBJECTIVE o Walters Inc. began operations on January I. 2019. The following information relates to Walters cash flows during 2019. Required: 1. Calculate the cash provided/fused for each cash flow category. 2. CONCEPTUAL CONNECTION Comment on Walters creditworthiness.arrow_forwardClassification of Cash Flows Rolling Meadows Country Club Inc. is a privately owned corporation that operates a golf club. Rolling Meadows reported the following inflows and outflows of cash during 2019: Rolling Meadows had cash on hand at lllf2019 of $8,500. Required: 1. Prepare a properly formatted statement of cash flows using the indirect method. 2. CONCEPTUAL CONNECTION What can you conclude by examining the patterns in Rolling Meadows cash flows?arrow_forwardSection V: SCF Question 3 Identify the following sections of the McDonald's SCF and record the amounts. Check the math by summing to the cash balance at end of year. Verify that the ending cash balance reported on the SCF is the same as reported on the balance sheet for the current year, Section Current Prior Year Second Prior Year Year Cash provided by operations? Click here to Click here to Click here to enter text. enter text. enter text. Cash used for investing activities? Click here to Click here to Click here to enter text. enter text. enter text. Cash used for financing activities? Click here to Click here to Click here to enter text. enter text. enter text. Cash and equivalents balance at end of year? Click here to Click here to Click here to enter text. enter text. enter text. D Focus lish (United States)arrow_forward
- 12. Henry Cowper From the following information, prepare a Statement of financial position of Henry Cowper at 30 September 2019, showing the appropriate headings: Cash in hand Inventory Bank Land and buildings Capital introduced by Henry Cowper Vehicles Receivables Payables overdraft 50 27,300 8,840 99,700 148,250 26,340 12,000 8,300arrow_forwardProblem 4 Ahw Tsu prepares financial statements on the cash basis. The statement of financial position on December 31, 2020 and the income statement for the current year are as follows: Cash P1,500,000 2,500,000 P4,000,000 Furniture and equipment Note payable Сapital: Balance, January 1 Add: Net income P1,000,000 P1,600,000 2,250,000 P3,850,000 850,000 Less: Withdrawals 3,000,000 P4,000,000 Professional fees P5,000,000 Expenses: Rent Supplies Other expenses P1,200,000 800,000 750,000 2,750,000 P2,250,000 Net income It was decided that the financial statements should be prepared on the accrual basis. Relevant information is as follows: 1) The furniture and equipment were acquired on July 1, 2019. The estimated life is 10 years. 2) The 12% promissory note us dated April 1, 2020 and matures in one year. Interest is payable on the date of maturity. 3) The accounts receivable as at December 31, 2020 and 2019 is P750,000 and P500,000, respectively. 4) Accrued rent on December 31, 2020,…arrow_forwardQuestion Content Area A company reported the following information: Interest receivable, December 31, 2023: $8,000 Interest receivable, December 31, 2022: $11,500 Interest revenue for 2023: $16,000 Interest receivable, December 31, 2023 $8,000 Interest receivable, December 31, 2022 11,500 Interest revenue for 2023 16,000 How much cash was received for interest during 2023?arrow_forward
- Courses =HCS380 Week 1 Terminology Matching Accounts Receivable Terminology Matching Note Payable Bonds Payable Common Stock Income Statement Balance Sheet Retained Earnings Statement Statement of Cash Flow Basic Accounting Equation multimedia.phoenix.edu Annual Report View Assessment HCS/380: Week 1 - Terminology Matching - Academic Resources Owed to a bank for the money borrowed Bill customer/patient for services HCS Debt securities sold to investors that must be repaid at a particular date in the future A AOL PASSV REQUIRED Enter your password for "kaylakı Accounts. Prepared by corporate management to present financial information, management discussion, notes, and auditor's report Used by creditors to determine if they will be paid Assets Liabilities+Stockholder's Equity Used by creditors and investors to analyze the organization's cash position Used by investors to evaluate the organization's history of paying high dividends The total amount paid in by stockholders for the share…arrow_forwardFrom the following balance the ledgers and make the trial Balance Cash Account Date Particular Amount Date Particular Amount 1.1.2020 50000 20.1.2020 50000 5.1.2020 80000 31.1. 2020 BAL C/D ? 12.1.2020 20000 01.02.2020 BAL B/D Capital Account Date Particular Amount Date Particular Amount 1.1.2020 20000 20.1.2020 150000 5.1.2020 10000 31.1.2020 BAL C/D ? 01.02.2020 BAL B/D Purchase Account Date Particular Amount Date…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License