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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Textbook Question
Chapter 21, Problem 21.13Q
Given sales revenue of $200,000, how can it be determined whether or not $200,000 cash was received from customers?
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Prepare the summary entries necessary to determine the amount of cash received from customers for each of the four independent situations below.
Situation
Sales revenue
Accounts receivableIncrease (Decrease)
Cash receivedfrom customers
1
$
220,000
$
10,200
?
2
220,000
(10,200
)
?
3
110,000
(15,200
)
?
4
110,000
15,200
?
Suppose your company sells services of $180 in exchange for $110 cash and $70 on account.Required:1. Show the journal entry to record this transaction.2. Identify the amount that should be reported as net cash flow from operating activities.3. Identify the amount that would be included in net income.4. Show how the indirect method would convert net income (requirement 3) to net cash flowfrom operating activities (requirement 2).5. What general rule about converting net income to operating cash flows is revealed by youranswer to requirement 4?
The balances of opening and closing accounts receivable are R40 000 and R15 000 respectively, what would be the value of cash received from customer if the net sales are R45 000?
Select one:
a. R85 000
b. R60 000
c. R70 000
d. R100 000
Chapter 21 Solutions
Intermediate Accounting, 10 Ed
Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2QCh. 21 - Prob. 21.3QCh. 21 - Prob. 21.4QCh. 21 - Prob. 21.5QCh. 21 - Prob. 21.6QCh. 21 - Prob. 21.7QCh. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q
Ch. 21 - Perhaps the most noteworthy item reported on an...Ch. 21 - Prob. 21.12QCh. 21 - Given sales revenue of 200,000, how can it be...Ch. 21 - Prob. 21.14QCh. 21 - When determining the amount of cash paid for...Ch. 21 - Prob. 21.16QCh. 21 - When using the indirect method of determining net...Ch. 21 - Prob. 21.18QCh. 21 - Prob. 21.19QCh. 21 - Where can we find authoritative guidance for the...Ch. 21 - U.S. GAAP designates cash outflows for interest...Ch. 21 - Prob. 21.1BECh. 21 - Prob. 21.2BECh. 21 - Prob. 21.3BECh. 21 - Prob. 21.4BECh. 21 - Investing activities LO215 Carter Containers sold...Ch. 21 - Financing activities LO216 Refer to the situation...Ch. 21 - Prob. 21.11BECh. 21 - Prob. 21.12BECh. 21 - Classification of cash flows LO213 through LO216...Ch. 21 - Indirect method; reconciliation of net income to...Ch. 21 - Prob. 21.29ECh. 21 - Prob. 21.30ECh. 21 - Prob. 21.31ECh. 21 - Prob. 21.32ECh. 21 - Prob. 21.1PCh. 21 - Research Case 219 FASB codification; locate and...Ch. 21 - IFRS Case 2110 Statement of cash flows...
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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
- Suppose your company sells services of $180 in exchange for $110 cash and $70 on account. prepare journal entry a) Record the service revenue of $110 for cash and $70 on account. dentify the amount that should be reported as net cash flow from operating activities. Identify the amount that would be included in net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).arrow_forward1. How much cash is received from sales to customers for year 2021? Assume all the sales were made on credit basis . 2. What is the net increase or decrease in the Cash account for year 2021?arrow_forwardSuppose your company sells services of $270 in exchange for $155 cash and $115 on account. Required: Prepare the journal entry to record this transaction. Identify the amount that should be reported as net cash flow from operating activities. Identify the amount that would be included in net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). I have no clue how to work this problemarrow_forward
- What is the correct accounting entry for a cash discount of $5,000 received by a company from a supplier?arrow_forwardSuppose your company sells services of $180 in exchange for $110 cash and $70 on account. Required: 1. Prepare the journal entry to record this transaction. 2. Identify the amount that should be reported as net cash flow from operating activities. 3. Identify the amount that would be included in net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).arrow_forwardSkysong, Inc. had credit sales of $1312000. The beginning accounts receivable balance was $135000 and the ending accounts receivable balance was $230000. Using the direct method of reporting cash flows from operating activities, what were the cash collections from customers during the period? $1312000. $1447000. $1217000. $1487000.arrow_forward
- The business makes payments to suppliers for goods purchased on account. Which account is the debit posted to? Should the P90,000 entry to the Cash account be a debit? (yes/no) What is the accounting entry to record a cash sale?arrow_forwardwhat is the correcting entry for... cash revenue amounting to $20,000arrow_forwardQ1: How much were the cash receipts from customers? Q2: How much were the disbursements for merchandise inventory?arrow_forward
- Consider the three independent situations below (amounts are $ in millions): Situation SalesRevenue Accounts ReceivableIncrease (Decrease) Cash Receivedfrom Customers 1. 2. 3. 200 200 200 -0- 30 (30) ? ? ? Required: 1. Calculate cash received from customers. 2. Prepare the summary journal entry for each situation.arrow_forward47. Which of the following item do not affect the Cash account? a. Purchases of P10,000 b. Sales of P5,000 c. Received cash for service rendered P2,000 d. Credit sales of P22,000arrow_forwardSuppose your company sells services of $180 in exchange for $110 cash and $70 on account. Required: 1. Prepare the journal entry to record this transaction. 2. Identify the amount that should be reported as net cash flow from operating activities. 3. Identify the amount that would be included in net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (Amounts to be deducted should be indicated with a minus sign.) Net Income Increase in Accounts Receivable Net Cash Flow from Operating Activitiesarrow_forward
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