Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 3, Problem 64PA
Transactions for Pops Company for 2011 were as follows:
- a. The owners started the business as a corporation by contributing $30,000 cash in exchange for common stock.
- b. The company purchased office equipment for $8,000 cash and land for $15,000 cash.
- c. The company earned a total of $22,000 of revenue of which $16,000 was collected in cash.
- d. The company purchased $890 worth of supplies for cash.
- e. The company paid $6,000 in cash for other operating expenses.
- f. At the end of the year, the company owed employees $2,480 for work that the employees had done in 2011. The next payday, however, is not until January 4, 2012.
- g. Only $175 worth of supplies was left at the end of the year.
The office equipment was purchased on January 1 and is expected to last for eight years (straight-line depreciation, no salvage value).
Requirements
- 1. Use an
accounting equation worksheet to record the transactions that occurred during 2011. - 2. Record any needed adjustments at year end.
- 3. Prepare the income statement, statement of changes in shareholders’ equity, and the statement of
cash flows for the year ended December 31, 2011, and thebalance sheet at December 31, 2011.
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The following transactions occurred in Nanon Company:a. Nanon, the owner, invested P25,000,000 and obtained P100,000,000 loan from a bank.b. The company purchased a manufacturing plant for business amounting to P152,000,000 for cash.c. It also purchased goods for sale on cash amounting to P250,000.d. There were sales of goods on credit amounting to P550,000.e. The company purchased goods for sale on credit amounting to P450,000.f. The company returned goods to the supplier amounting to P50,000 which was evidence by a credit memo from the supplier.g. Various accruals were recorded at the end of the period amounting to P30,000.
From the above transactions, what is the total amount to be recorded in the Cash Receipts Journal?Â
P150,250,000P150,000,000P150,300,000P125,000,000
Additional information provided:
               •            Equipment costing $52,000 was purchased for cash.
               •            Equipment with a net asset value of $10,000 was sold for $14,000
               •            Depreciation expense of $12,000 was recorded during the year.
               •            During 2014, the company repaid $40,000 of long-term notes payable.
               •            During 2014, the company borrowed $34,000 on a new note payable
Based on the info provided which of the following is the correct narrative and ending balance in the investing activities section of the company’s statement of cash flows:
a.
Net cash provided by investing activities $38,000
b.
Net Cash used for investing activities ($38,000)
c.
Net cash provided by investing activities $66,000
d.
Net Cash used for investing activities ($66,000)
Metlock, Inc. recorded the following cash transactions for the year:
Paid $149000 for salaries.
Paid $64600 to purchase office equipment.
Paid $14800 for utilities.
Paid $5000 in dividends.
Collected $286000 from customers.
What was Metlock's net cash provided by operating activities?
O $57600
O $137000
O $117200
O $122200
Chapter 3 Solutions
Financial Accounting
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