Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Five Incorporated maintains its accounting records using the cash basis but presents financial basis using the accrual method. For the year 2021, Five reported cash basis income of 532,000. Other information are as follows:
Accounts Receivable, January 1
300,000
Accounts Receivable, December 31
150,000
Accounts Payable, January 1
400,000
Accounts payable, December 31
320,000
What is the accrual basis net income?
Grier & Associates maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis. The cash basis income statement, along with additional information, follows:
Grier & Associates
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For the Year Ended December 31, 2025
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Cash payments:
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Insurance 40,000
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Beyond Belief manufactures computer equipment and provides financing for purchases by its customers. Beyond Belief reported sales and interest revenues of $79,500 million for 2019. The balance sheet showed current and noncurrent receivables of $ 30,750 million at the beginning of 2019 and $ 26,900 million at the end of 2019. Compute the amount of cash collected from customers during 2019.
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- BTS Inc. has recorded the following transactions on its book for the year 2021. How much total Cash Inflow from financing activities that BTS should reflected on its Statement of Cash Flow:i. Payment for interest of the issued bonds on April 1, 2021, 900.ii. Cash dividend received on the short-term investment, 5,000iii. Depreciation on plant that manufactures goods for sale, 6,000.iv. Payment of income tax on gain on sale of treasury bills, 2,000.v. Issued 500 ordinary shares for 50,000.vi. Received cash from interest on the acquired treasury bonds of BigHit Corp, 2,400.vii. Payment for marketable securities, 12,000arrow_forwardSkysong, Inc. had the following transactions involving current assets and current liabilities during February 2019. Feb. 3 Collected accounts receivable of $18,900. 7 Purchased equipment for $36,800 cash. 11 Paid $3,500 for a 1-year insurance policy. 14 Paid accounts payable of $12,400. 18 Declared cash dividends, $8,500. Additional information:As of February 1, 2019, current assets were $135,000 and current liabilities were $35,400.Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.) Current ratio as of February 1, 2019 enter current ratio :1 Feb. 3 enter the current ratio as of February 3 :1 Feb. 7 enter the current ratio as of February 7 :1 Feb. 11 enter the current ratio as of February 11 :1 Feb. 14 enter the current ratio as of February 14 :1 Feb. 18 enter the current ratio as of February 18 :1arrow_forwardCocoMelon Company is preparing its 2020 financial statement, accounting period ends on December 31. You have been asked to compute the amount included in the "Trade and Other Receivable" of the entity's financial position from the following information: A. A $10,000 check received from a customer dated February 1, 2021 is on hand. B. A customer's check for $20,000 was included in the December 20 deposit. It was returned by the bank stamped "NSF”. No entry had yet been made by Masaya to reflect the return. C. A $50,000 Certificate of Deposits on which $2,000 of interest accrued to December 31 has just been recorded by debiting Interest Receivable and crediting Interest Income. The chief accountant proposes to report the $50,000 as "Cash in Bank”. D. Masaya has a $5,000 petty cash fund. As of December 31, the fund custodian reported expense vouchers covering various expenses in the amount of $4,570 and cash of $420. E. Postage stamps that costs $100 are in the cash drawer. F. A cashier's…arrow_forward
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