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 8, Problem 14E
To determine
Record the events occurring on May 1, May 15 and May 31 in a horizontal statements model. In the statement of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
BIC Penc
Cash
Dividends
Cash
24 For a recent year a corporation's financial statements reported
the following:
Based on the following information, what amount will the
corporation report as Net Cash Provided (Used) by Operating
Activities on the statement of cash flows?
Net Income
Depreciation
$
$
Increase in accounts receivable
Decrease in accounts payable
$
$b
A)
B)
Net cash provided by operating activities
Net cash provided by operating activities
C) Net cash provided by operating activities
D) Net cash provided by operating activities
E) None of the above
nommon to 201
25 The acquisition of land by issuing common stock is ommi
A)
a noncash transaction which is not reported in the body of a
statement of cash flows.
B)
a cash transaction and would be reported in the body of a
statement of cash flows.
C)
a noncash transaction and would be reported in the body of a
statement of cash flows.
D)
only reported if the statement of cash flows is prepared using
the direct method.
E)
none of…
Brief Exercise 11-31 (Algorithmic)
Determining Net Cash Flow from Financing Activities
Madison Company reported the following information:
Notes payable
Common stock
Retained earnings
12/31/2019
12/31/2018
$95,000
$75,000
120,000
20,000
80,000
36,000
Madison reported net income of $25,000 for the year ended December 31, 2019. In addition, Madison repaid $27,000 of the notes payable during
2019.
Required:
Compute net cash flow from financing activities. Use a minus sign to indicate negative cash flows (outflows).
Test Financial Statement Preparation ( So)
Instruction: Prepare a formal Statement of Canh Flows for the year ended December 31, 2021, in
thousand Pesos
Bebeme Corp provided the following information during 2021
Dividend paid
Cash, January 2021
Dividend received
Cash received from customens
Proceeds from issuing share capital
P1,000
1800
s00
9000
1.500
Interest received
200
Proceeds from sale of long term investment
Cash paid to suppliers and employees
Interest paid on long term debt
Income taxes paid
2.000
6,000
400
300
5/8
...
Chapter 8 Solutions
Survey Of Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Prob. 1ECh. 8 - Exercise 8-2 Effect of accounting events on the...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Exercise 8-5 Characteristics of capital stock The...Ch. 8 - Exercise 8-6 Effect of issuing common stock on the...Ch. 8 - Exercise 8-7 Recording and reporting common and...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Exercise 8-13 Recording and reporting treasury...Ch. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19PCh. 8 - Problem 8-20 Effect of business structure on...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Problem 8-23 Recording and reporting stock...Ch. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Problem 8-26 Treasury stock transactions and...Ch. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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
- C. Cash Flow Statement Prepare a Cash Flow Statement for Red Company for the year ended December 31, 2021. Red Company Balance Sheets December 31, ASSETS LIABILITIES AND EQUITY a. b. C. Cash Accounts receivable Inventory Investments (long-term) Land Equipment. Accumulated depreciation d. e. f. Accounts payable Salaries payable Dividends payable Common stock, $10 par Paid-in capital in excess of par Retained earnings Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other information: Other operating expenses Total operating expenses Other income: Gain on sale of long-term investments Income before income tax Income tax expense Net income 2021 $ 186,800 250,000 293,000 0 Equipment was acquired for $78,000. Land was purchased for $290,000. The investments were sold for $190,000. 290,000 735,200 (221,800) $ 1,533,200 Red Company Income Statement Year Ended December 31, 2021 $164,800 13,400 33,200 200,000 640,000 481.800 $ 1,533,200 2020 $ 115,600 247,000…arrow_forwardCh: Analyzing Financial Statements The current year financial statement for sand and Juffair companies are presented below. Balance sheet at 31 Dec 2019 Item Cash Account receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement at 31 Dec 2019 item Sales revenue (1/3 on credit) (-) Cost of goods sold (-) Operating expenses Net income Other data item Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year Sand 45000 45000 95000 160000 90000 435000 95000 75000 155000 40000 70000 435000 Sand 440000 230000 159000 51000 Sand 23 30% 34000 Juffair 22000 35000 45000 415000 320000 837000 65000 65000 522000 110000 75000 837000 Juffair 800000 399000 315000 86000 Juffair 25 30% 153000 Both companies are in the fish catching and…arrow_forwardRequlred Informatlon Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 11-3, 11-6 [The following Information applies to the questions displayed below.] Sun Corporation recelved a charter that authorized the Issuance of 85,000 shares of S6 par common stock and 22,000 shares of $100 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during Its first two years of operation. Year 1 Jan. 5 Sold 12,750 shares of the $6 par common stock for $8 per share. 12 Sold 2,20e shares of the 4 percent preferred stock for $110 per share. Apr. 5 Sold 17,000 shares of the $6 par common stock for $18 per share. Dec. 31 During the year, earned $311,980 in cash revenue and paid $238,400 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. Year 2…arrow_forward
- Assets Cash S.T. Investments Accts Receivable Inventories Total Current Assets Net PP&E Total Assets Liabilities. Accts Payable Notes Payable Accruals Balance Sheet Current Liabilities L.T. Bonds Preferred Stock Common Stock Retained Earnings Total Equity Total Liab. & Equity Less: Interest 2021 120 30 400 Pre-tax Earnings 1,200 1,750 3,000 4,750 100 100 300 500 520 200 530 3,000 3,530 4,750 Net Sales COGS except Dep Depreciation & Amortization Other Operating Expenses EBIT Income Statements 2021 5,500 3,800 180 600 920 60 860 215 Taxes (25%) Preferred Dividends 15 Net Income for CS Holders 630 2020 $102 40 384 774 1. What is the company's MVA? 2. What is the company's EVA in? 3. What is the current ratio of the Company? 1,300 1,780 3,080 180 28 370 578 350 100 500 1,552 2,052 3,080 Number of Common Stock Outstanding = 1,200 Price of Common Stock = 4.00 WACC Cost of Capital = 12.0% Return on Investment (ROI)= 15.97% 2020 4,800 3,710 180 470 440 40 400 100 7 293arrow_forwardP4-7 Statement of cash flows Below we reproduce the stockholders' equity section of the 2019 and 2018 balance sheets for Baker Corporation, which also appear as part of Table 4.5. Account Preferred stock Common stock (par) Paid-in capital Retained earnings Total stockholders' equity 2019 $ 100 120 380 600 1,200 2018 $100 120 380 500 1,100 a. The Baker Corporation statement of cash flows in Table 4.6 shows a $0 cash inflow resulting from changes in stockholders' equity, yet the balance sheet shows that stockholders' equity increased by $100 in 2019. Can you explain this apparent contradiction? b. Will the statement of cash flows for Baker Corporation show a $0 cash inflow resulting from the change in stockholders' equity every year, or are other values possible? Explain how Baker's statement of cash flows could show a positive cash inflow resulting from a change in stockholders' equity in some future year?arrow_forwardOn May 1, Year 3, Love Corporation declared a $74,100 cash dividend to be paid on May 31 to shareholders of record on May 15. Required Record the events occurring on May 1 and May 31 in the following horizontal statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Date May 01 May 31 Assets Balance Sheet Liabilities Common Stock LOVE CORPORATION Horizontal Statements Model Retained Earnings Revenue Income Statement Expenses Net Income Statement of Cash Flowsarrow_forward
- 04-Principles of Management Acco My courses / BUSS 104-1-20202 / MAKEUP TEST SCHEDULED FOR Thursday 6th st (06-05-2021 from 11:00 to 12: Noon) If a company purchased avalaible for sale securities with cash, this would be reported on the statement of cash flows as? Select one: in O a. Financing Activities cash outflow O b. Investing Activities cash outflow O c. Financing Activities cash inflow d. Operating activities cash outflow Clear my choice Next page pagearrow_forwardMissing amounts from financial statements The financial statements at the end of Wolverine Realty's first month of operations are as follows: by analyzing the interrelationships among the four financial statements, determine the proper amounts for the missing items. Use the minus sign to indicate cash outflows, cash payments, and decreases in cash in the Statement of Cash Flows. Fees earned Expenses: Wages expense Rent expense Supplies expense Utilities expense Miscellaneous expense Total expenses Net income Wolverine Realty Income Statement For the Month Ended April 30, 20Y0 Net income Balances, April 1, 20Y0 Issued common stock Dividends Wolverine Realty Statement of Stockholders Equity For the Month Ended April 30, 20Y0 Balances, April 30, 2010 Common Stock $309.000 106,000 $0 20,000 23.000 Retained Earnings 125.000 (491,000) $268.000 $ Total 50 125,000arrow_forwardConduct a vertical analysis from the Balance Sheet below and select the INCORERECT observation Balance Sheet Particulars 1. Equity And Liabilities: 1. Shareholder's Funds (a) Share Capital (b) Reserve and Surplus 2. Non-Current Liabilities 3. Current Liabilities II. Assets: 1. Non-Current Assets 2. Current Assets Total Note No. Amount A Ltd. 8 Ltd. 4,00,000 5,40,000 2,00,000 2,60,000 3,00,000 2,50,000 1,00,000 1,50,000 10,00,000 12,00,000 4,00,000 7,00,000 6,00,000 5,00,000 www.Totalgoel 10,00,000 12,00,000 O a. In comparison to B. Ltd, A Ltd's existing liabilities are (10%) are in a stronger way (12.50%) O b. In comparison to A Ltd, B Ltd has a higher share capital O c. B Ltd's Non Current Assets are 18.33% higher than A Ltd O d. In comparison to A Ltd, B Ltd has a stronger long term status O e. B Ltd's Current Assets are 18.33% higher than A Ltdarrow_forward
- From the summary cash account of X Ltd. prepare the Cash Flow Statement for the year ended 31 March, 2020 by Direct Method. CASH BOOK Dr. for the year ended March 31,2020 Cr. Particulars SAR. Particular SAR. 50,000 By Payment to Suppliers 3,00,000 By Purchased of Fixed Assets 2,00,000 20,00,000 To Balance on April 1, 2019 To Issue of Equity Shares To Receipts from Customers To Sale of Fixed Assets 28,00,000 By Overhead Expenses 1,00,000 By Wages and Salaries 2,00,000 |1,00,000 2.50.000 By Income Tax Paid By Dividend Paid By Re payment of Bank Loan | 3,00,000 By Balance on March 31, 2020 1,50,000 50,000 32.50.000 32,50,000arrow_forwardSection A - Preparing Statement of Changes in Equity and Statement of Cash Flows: The following are the financial statements of Small Limited for the year ended 30 September 2023: Statements of Financial Position as at 30 September Non-current assets Property, plant and equipment Current assets Inventories Trade receivables Cash and bank balance Total assets Shareholders' equity Ordinary share capital Share premium Retained earnings Non-current liabilities Bank loan Current liabilities Trade payables Accruals Bank overdraft Current tax payable Total liabilities Total equity and liabilities 2023 ($) 800,000 154,000 180,000 230,000 356,000 234,000 14,000 1,418,000 1,316,000 50,000 2022 ($) 550,000 300,000 170,000 260,000 408,000 120,000 1,128,000 680,000 74,000 10,000 766,000 156,000 290,000 1,418,000 150,000 174,000 8,000 202,000 102,000 636,000 1,316,000arrow_forward14. Cash Flow Statement Required: Prepare a statement of Cash Flows For Year Ended December 31, 2021 Use Proper Format and Indirect Method The comparative balance sheets of Street Inc. at the beginning and end of the year 2021 are as follows: Cash Accounts Receivable Inventory Property, Plant and Equipment Accumulated Depreciation Marketable Securities Loan Receivable Total Assets Accounts Payable Income Taxes Payable Dividends Payable Lease Liability Common Stock Capital in Excess of Par Retained Earnings Total Liabilities and Stockholders Equity Street, Inc. Income Statement For Year Ended December 31, 2021 Sales Cost of Good Sold Gross Profit Depreciation Expense Administrative Expense Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Taxes Net Income Dec 31st $600,000 332,000 4,100,000 600,000 550,000 (325,000) (300,000) 1,250,000 1,000,000 100,000 $6,557,000 $6,070,000 $180,000 $140,000 45,000 46,000 10,000 January 1st $320,000 300,000 4,100,000 $4,000,000…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License