Concept explainers
1.
Introduction:
To prepare: The general
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Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.
To prepare: Ledger for the following transactions.
3.
Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.
To prepare: Trail balance.
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Loose Leaf for Financial Accounting: Information for Decisions
- December 2011, Jillian Powell organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of March were as follows: Dec. 2 The Corporation issued 400,000 shares of capital stock to Jillian Powell in exchange for 800,000 cash. Dec. 4 purchased a truck for 450,000. Made a 150,000 cash down payment and issued a note payable for the remaining balance. Dec. 5 Paid Sloan Properties 25,000 to rent office space for the month. Dec. 9 Billed customers 11,300 for services for the first half of March. Dec. 15 paid 7,100 in salaries earned by employees during the first half of March. Dec. 19 Paid Bill’s Auto 9000 for maintenance and repair services on the company truck. Dec. 20 Collected 38000 of the amounts billed to customers on March 9. Dec. 28 Billed customers 14,400 for services performed during the second half of the month. Dec. 30 Paid…arrow_forward[The following information applies to the questions displayed below.] Sanyu Sony started a new business and completed these transactions during December. 1 Sanyu Sony transferred $65,300 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock. 2 The company paid $1,800 cash for the December rent. 3 The company purchased $14,200 of electrical equipment by paying $6,000 cash and agreeing to pay the $8,200 balance in 30 days. 5 The company purchased supplies by paying $1,000 cash. 6 The company completed electrical work and immediately collected $1,800 cash for these services. 8 The company purchased $2,820 of office equipment on credit. 15 The company completed electrical work on credit in the amount of $5,500. 18 The company purchased $450 of supplies on credit. 20 The company paid $2,820 cash for the office equipment purchased on December 8. 24 The company billed a client $900 for electrical work completed; the balance is…arrow_forwardThe following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $3.990 from a local bank on a note due in six months. b. Received $4,680 cash from investors and issued common stock to them. C. Purchased $1,100 in equipment, paying $250 cash and promising the rest on a note due in one year. d. Paid $350 cash for supplies. e. Bought and received $750 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero.arrow_forward
- The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,390 from a local bank on a note due in six months. b. Received $5,080 cash from investors and issued common stock to them. c. Purchased $1,900 in equipment, paying $650 cash and promising the rest on a note due in one year. d. Paid $750 cash for supplies. e. Bought and received $1,150 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginni Debit Beginning Balance Ending Balance Debit F Cash Equipment Credit Credit Debit Beginning Balance Ending Balance Debit Supplies Accounts Payablearrow_forwardDecember 2011, Jillian Powell organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of December were as follows: Dec. 2 The Corporation issued 400,000 shares of capital stock to Jillian Powell in exchange for 800,000 cash. Dec. 4 purchased a truck for 450,000. Made a 150,000 cash down payment and issued a note payable for the remaining balance. Dec. 5 Paid Sloan Properties 25,000 to rent office space for the month. Dec. 9 Billed customers 11,300 for services for the first half of December. Dec. 15 paid 7,100 in salaries earned by employees during the first half of December. Dec. 19 Paid Bill’s Auto 9000 for maintenance and repair services on the company truck. Dec. 20 Collected 3800 of the amounts billed to customers on December 9. Dec. 28 Billed customers 14,400 for services performed during the second half of the month. Dec. 30…arrow_forwardDecember 2011, Jillian Powell organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of December were as follows: Dec. 2 The Corporation issued 400,000 shares of capital stock to Jillian Powell in exchange for 800,000 cash. Dec. 4 purchased a truck for 450,000. Made a 150,000 cash down payment and issued a note payable for the remaining balance. Dec. 5 Paid Sloan Properties 25,000 to rent office space for the month. Dec. 9 Billed customers 11,300 for services for the first half of December. Dec. 15 paid 7,100 in salaries earned by employees during the first half of December. Dec. 19 Paid Bill’s Auto 9000 for maintenance and repair services on the company truck. Dec. 20 Collected 3800 of the amounts billed to customers on December 9. Dec. 28 Billed customers 14,400 for services performed during the second half of the month. Dec. 30 Paid 7,500 in salaries earned by employees…arrow_forward
- Sanyu Sony started a new business and completed these transactions during December.Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account inthe name of Sony Electric.2 The company rented office space and paid $1,000 cash for the December rent.3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing topay the $8,200 balance in 30 days.5 The company purchased office supplies by paying $800 cash.6 The company completed electrical work and immediately collected $1,200 cash for these services.8 The company purchased $2,530 of office equipment on credit.15 The company completed electrical work on credit in the amount of $5,000.18 The company purchased $350 of office supplies on credit.20 The company paid $2,530 cash for the office equipment purchased on December 8.24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.28 The company received $5,000 cash for the work completed…arrow_forwardGrassley Company completes these transactions during November of the current year (terms for all its credit sales are 2/10, n/30). Nov. 1 Purchased $5,058 of office equipment on credit from Brun Supply, terms n/30. 2 Borrowed $88,500 cash from Wisconsin Bank by signing a long-term note payable. 4 Purchased $33,500 of merchandise from BLR Industries, terms 2/10, n/30. 5 Purchased $1,040 of store supplies on credit from Grebe Company, terms n/30. 8 Sold merchandise on credit to Cyd Rounder, Invoice No. 439, for $6,550 (cost is $3,910). 10 Sold merchandise on credit to Carlos Mantel, Invoice No. 440, for $13,500 (cost is $8,500). 11 Purchased $2,557 of merchandise from Lo Company, terms 2/10, n/30. 12 Sent BLR Industries Check No. 633 in payment of its November 4 purchase less the discount of $670. 15 Issued Check No. 634 for $6,585; payee is Payroll, in payment of sales salaries expense for the first half of the month. 15 Cash sales for the first half of the month are $18,170 (cost is…arrow_forwardSanyu Sony started a new business and completed these transactions during December.Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account inthe name of Sony Electric.2 The company rented office space and paid $1,000 cash for the December rent.3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing topay the $8,200 balance in 30 days.5 The company purchased office supplies by paying $800 cash.6 The company completed electrical work and immediately collected $1,200 cash for these services.8 The company purchased $2,530 of office equipment on credit.15 The company completed electrical work on credit in the amount of $5,000.18 The company purchased $350 of office supplies on credit.20 The company paid $2,530 cash for the office equipment purchased on December 8.24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.28 The company received $5,000 cash for the work completed…arrow_forward
- Sanyu Sony started a new business and completed these transactions during December.Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account inthe name of Sony Electric.2 The company rented office space and paid $1,000 cash for the December rent.3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing topay the $8,200 balance in 30 days.5 The company purchased office supplies by paying $800 cash.6 The company completed electrical work and immediately collected $1,200 cash for these services.8 The company purchased $2,530 of office equipment on credit.15 The company completed electrical work on credit in the amount of $5,000.18 The company purchased $350 of office supplies on credit.20 The company paid $2,530 cash for the office equipment purchased on December 8.24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.28 The company received $5,000 cash for the work completed…arrow_forwardThe transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $7,400. b. The firm borrowed $5,900 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,600 were purchased for cash. The original list price of the equipment was $1,930, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,500 was paid for the first month's rent. e. Inventory of $14,700 was purchased; $8,500 cash was paid to the suppliers, and the balance will be paid within 60 days. f. During the first week of operations, merchandise that had cost $3,100 was sold for $5,100 cash. g. A newspaper ad costing $100 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month. h. Additional inventory costing $4,350 was purchased; cash of $1,100 was paid,…arrow_forward1 Sanyu Sony transferred $65,300 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock. 2 The company paid $1,800 cash for the December rent. 3 The company purchased $14,200 of electrical equipment by paying $6,000 cash and agreeing to pay the $8,200 balance in 30 days. Dec.arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning