(1) (2) Cash Paid (3) Interest (4) Decrease in (5) Carrying Value Period for Interest Expense Carrying Value Issue date $76,860 1 $2,450 $2,306 $144 76,716 2,450 2,301 149 76,567 2.
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Presented below is a partial amortization schedule for Premium Pizza.
1. Record the bond issue assuming the face amount of bonds payable is $70,000.
2. Record the first interest payment.
3. Explain why interest expense decreases each period.
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- 11In a cash flow statement, which one of the following would appear as an outflow of cash? Select one: a. An increase in debtors during the year. b. An increase creditor during the year. c. Depreciation charges on fixed assets. d. Loss on sale of a fixed asset. 12A credit balance on accruals account indicates? Select one: a. a liability and an expense owing. b. an asset and a prepayment of income. c. an asset and an accrual of income. d. a liability and an expense prepaid. 6ABC paid XYZ rent in advance for one year. By recording this payment ABC will reflect: Select one: a. An increase in assets and liabilities. b. An increase in assets and stockholder's equity. c. An increase in assets and decrease in liabilities. d. No change in total assets. 8Which of the following expenses will not be analyzed to administrative expenses in a published profit and loss account for a company? Select one: a. Bank charges and interest. b. Office expenses. c. General expenses. d. Managing Director…What should be the impact(add or subtract) on statement of cash flow. Increase in Cash 40,308 -cash was 378,511 beg and 418,819 endg Decrease in Account receivable 15,351 Increase in Inventories. 15,117 Increase in prepayments. 16,776 Increase in PP&E. 1,134,644 - no sale of PPE during the year Increase in accumulated depreciation-no sale of PPE during the year Increase in Other Non-operating Assets. 8711 Decrease in account payable 660 Increase in other current liabilities. 114,596 Increase in long term debt 244,285 Increase in other -operating liabilities 140,026 Increase in common stock 96,991 Increase in retained earnings 340,879 Net Income was $474,378Account Titles Debit CreditCash $ 7Accounts Receivable 3Supplies 3Equipment 9Accumulated Depreciation $ 2Software 6Accumulated Amortization 2Accounts Payable 4Notes Payable (short-term) 0Salaries and Wages Payable 0Interest Payable 0Income Taxes Payable 0Deferred Revenue 0Common Stock 15Retained Earnings 5Service Revenue 0Depreciation Expense 0Amortization Expense 0Salaries and Wages Expense 0Supplies Expense 0Interest Expense 0Income Tax Expense 0Totals $ 28 $ 28Transactions during 2018 (summarized in thousands of dollars) follow:Borrowed $25 cash on July 1, 2018, signing a six-month note payable.Purchased equipment for $28 cash on July 2, 2018.Issued additional shares of common stock for $5 on July 3.Purchased software on July 4, $3 cash.Purchased supplies on July 5 on account for future use, $7.Recorded revenues on December 6 of $58, including $8 on credit and $50 received in…
- Asap The following information is available from the current period financial statements: Net income $126,307 Depreciation expense 23,648 Increase in accounts receivable 16,473 Decrease in accounts payable (19,595) The net cash flows from operating activities using the indirect method is a.$126,307 b.$113,887 c.$66,591 d.$186,023The following information is available from the current period financial statements: Net income $ 120,206 Depreciation expense $31,199 Increase in accounts receivable $16,040 Decrease in accounts payable $24,041 The net cash flow from operating activities using the indirect method is a.$97,008 b.$191,486 c.$111,324 d.$72,967Assets - Liabilities = Owner's Equity $81, 600 $17,000 ? 430,185 ? $373,065 44,625 42,917 ? ? 591,600 843,285 974,534 ? 319,439 Calculate the missing values indicated with a ?
- How many of these items would be subtracted from net income to prepare the operating activities section of the statement of cash flows? a. Decrease in accounts receivable b. Issuance of common stock c. Increase in interest receivable d. Purchase of land e. Decrease in accounts payable f. Gain on the sale of equipment g. Depreciation expense h. Payment of dividends I. Decrease in utilities payable j. Increase in inventory Multiple Choice: A. 1 B. 2 C. 5 D. 4Good day, how do we calculate the missing amounts when doing a comparative balance sheet? Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/Decrease Assets Cash and cash Equivalent $ 51,500.00 $ 45,400.00 Accounts Receivable Inventories $ 61,400.00 $ 9,500.00 Fixed Assets, net $ 160,000.00 $ 110,000.00 Total Assets $ 324,000.00 $ 268,700.00 $ 55,600.00 Liabilities Accounts Payable Accrued liabilities $ 31,000.00 -$ 6,550.00 Long-term notes payable $ 60,000.00 $ 78,540.00 Stockholders Equity: Common Stock $ 143,050.00 $ 105,110.00 $ 37,940.00 Retained Earnings $ 54,800.00 $ 19,700.00 $ 35,100.00 Total liabilities and Stockholders equity $ 324,300.00 $ 268,700.00 $ 55,600.0011. In 2020, Windsor Corporation reported a net loss of $69,800. Windsor’s only net income adjustments were depreciation expense $81,700, and increase in accounts receivable $8,900.Compute Windsor’s net cash provided (used) by operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash by operating activities $
- Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: a. Increase in prepaid expenses b. Amortization of patents c. Increase in salaries payable d. Gain on sale of fixed assets e. Decrease in accounts receivable f. Increase in notes receivable due in 60 days g. Amortization of discount on bonds payable h. Decrease in merchandise inventory i. Depreciation of fixed assets j. Loss on retirement of long-term debt k. Decrease in accounts payable l. Increase in notes payable due in 30 days m. Increase in income taxes payable1. In which section of the statement of financial position should cash that is restricted for the settlement of liabilitydue 18 months after the reporting period be presented?a. Current assetsb. Equityc. Noncurrent liabilitiesd. Noncurrent assetsThe following information is available from the current period financial statements: Net income $126,307 Depreciation expense 23,648 Increase in accounts receivable 16,473 Decrease in accounts payable (19,595) The net cash flows from operating activities using the indirect method is a.$126,307 b.$113,887 c.$66,591 d.$186,023
