12345Amounts billed to clients for services rendered6 Cash collected from clients7Cash disbursements:8Salaries paid to employees for services rendered during the year9Utilities10Purchase of insurance policy11 Additional information:12Utility costs year 113Liabilities at the end of year 214Anticipated bad debts on receivablesInsurance policy termA1. Calculate the net operating cash flow for years 1 and 2.2. Calculate the amount of receivables from clients that the firm would2223242526 Revenues27 Expenses:28 Salaries29 Utilities3031323334BListed below are several transactions that took place during the first two years of operations for an accounting firm:InsuranceNet income (loss)151617 Required:18192021 show in its year 1 and year 2 balance sheets prepared according to theaccrual accounting model.3. Prepare an income statement for each year according to the accrual accounting model.Income Statements - Accrual basisYear 1$260,000208,000104,00062,00064,000Year 1($22,000)Year 1$260,000C104,00050,000Year 2$325,000293,000130,00087,000050,000004Year 2$76,000Year 2$325,000D130,000years[

Income statement :— It is one of the financial statement that shows profitability, total revenue and…

3 9 A Amounts billed to clients for services rendered Cash collected from clients Cash disbursements: Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 0 1 Additional information: 2 Utility costs year 1 3 Liabilities at the end of year 2 4 Anticipated bad debts on receivables 5 Insurance policy term 6 7 Required: 8 2 3 4 Listed below are several transactions that took place during the first two years of operations for an accounting firm: 91. Calculate the net operating cash flow for years 1 and 2. 0 2. Calculate the amount of receivables from clients that the firm would 1 show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. B Insurance Net income (loss) Year 1 $260,000 208,000 104,000 62,000 64,000 2 3 3. Prepare an income statement for each year according to the accrual accounting model. 4 Income Statements - Accrual basis 5 6 Revenues 7 Expenses: 8 Salaries 9 Utilities 0 1 Year 1 ($22,000) Year 2 $325,000 293,000 130,000 87,000 0 50,000 0 0 4 Year 2 $76,000 Year 1 Year 2 $260,000 $325,000 D 104,000✔ 130,000 50,000 years I

3 9 A Amounts billed to clients for services rendered Cash collected from clients Cash disbursements: Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 0 1 Additional information: 2 Utility costs year 1 3 Liabilities at the end of year 2 4 Anticipated bad debts on receivables 5 Insurance policy term 6 7 Required: 8 2 3 4 Listed below are several transactions that took place during the first two years of operations for an accounting firm: 91. Calculate the net operating cash flow for years 1 and 2. 0 2. Calculate the amount of receivables from clients that the firm would 1 show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. B Insurance Net income (loss) Year 1 $260,000 208,000 104,000 62,000 64,000 2 3 3. Prepare an income statement for each year according to the accrual accounting model. 4 Income Statements - Accrual basis 5 6 Revenues 7 Expenses: 8 Salaries 9 Utilities 0 1 Year 1 ($22,000) Year 2 $325,000 293,000 130,000 87,000 0 50,000 0 0 4 Year 2 $76,000 Year 1 Year 2 $260,000 $325,000 D 104,000✔ 130,000 50,000 years I

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PB: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. issued stock for cash $20,000 B. purchased supplies inventory on account $1,800 C. paid employee salaries; assume it was current days expenses $950 D. paid note payment to bank (principal only) $1,200 E. collected balance on accounts receivable $4,750
MC29 The following pertains to Onyx Trading on April 30, 2020: Correct cash balance in a general checking account with Equitable-PCIBank — P320,000 Overdraft in a special checking account with Family Bank (Onyx does not have another account with Family Bank) — P20,000 Cash accumulated in a special fund that will be used for plant expansion in five years — P150,000 Cash surrender value of life insurance policy — P 32,000 Cash travel advances in the hands of sales personnel — P12,000 Currency and coins in a petty cash fund (the company has not replenished the fund to the imprest amount of P2,000) — P580 How much cash should Onyx report on the April 30, 2020 statement of financial position? (WITH SOLUTION) a. P332,580 b. P322,000 c. P320,580 d. P302,000
55. he statement of financial position of CPA Company dated October 31,2021, shows cash of P2,177,870. The following items were found to comprise this amount: Cash in Metrobank, (outstanding checks as of year-end totaled P50,200)-P290,320; Petty cash fund (including expense receipts of P2,500)-P15,000; Undeposited sales receipts -P47,200; Sinking fund cash – P500,000; Cash surrender value of life insurance policy –P800,000; Cash in foreign bank (in equivalent pesos) - P250,000; Cash travel advances in the hands of sales personnel-P25,000; Customer’s check on hand: Traveler’s check – P14,450; Customer’s check dated November 3, 2021- P7,400; Manager’s check- P8,500; 120-day BSP Treasury bills- P120,000; 90 day, BSP treasury bills – P100,000. What is CPA’s correct amount of cash and cash equivalents on October 31, 2021?
Comment on the Cash flows from operating activities R756 000; Increase in receivables (R396 000) and Cash flows from investing activities (R1 368 000)
Could you please explain to me how the cash balances are calculated???? Pro Forma Cash Flow Cash Received Cash from Operations Cash Sales $24,198 $100,099 $122,460 Cash from Receivables $46,108 $217,218 $342,905 Subtotal Cash from Operations $70,306 $317,317 $465,366 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $40,000 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $70,306 $357,317 $465,366 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending $167,000 $225,200 $229,200 Bill Payments $75,294 $124,114 $152,785 Subtotal Spent on Operations $242,294 $349,314 $381,985 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0…
Green Company uses the Baumol model tomanage its disbursement account. Monthlycash disbursement is P1,200,000. Cash in thisaccount could have earned 5% on moneymarketable securities. Green incurs P576every time cash is transferred to this account.The optimum cash balance is A. 576,000.00B. 166,276.88C. 124,707.66D. 432,000.00
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43. In 2021, Allen company reported cash basis income of P 7,800,000. Tracing back its records, accounts receivable and accounts payable on December 31, 2021 were P5,200,000 and P 1,950,000 respectively. During the year, the accounts receivable increased by 200% while accounts payable decreased by 50%. How much were net income using accrual method? CHOICES: P 7,800,000 P 12,350,000 P 8,450,000 P 7,150,000
Comparative statement of financial position of Alpha Sdn Bhd as at 31 December 2023 and 2022 are as following: 2023 2022 RM million RM million Cash at bank 108.5 50.4 Accounts receivable (less: provision for doubtful debts) 393.0 219.0 Inventories 84.0 134.4 585.5 403.8 Plant and equipment (NBV) 475.6 364.8 Investment in government securities 33.6 33.6 509.2 398.4 Total assets 1,094.7 802.2 Ordinary shares 530.0 290.0 180 million 10% Preference shares 180.0 180.0 Retained earnings 105.0 73.5 815.0 543.5 Accounts payable 205.9 197.8 Tax payable 15.0 10.0 Deferred taxation 37.8 50.9 10% Debentures 21.0…
11. CPA Company’s “cash count” as of December 31, 2021, is composed of the following:· Cash on Hand- P500,000· Demand Deposit- P2,000,000· Time Deposit, 30 days- P1,000,000· NSF Check of customer- P40,000· Money market placement (due June 30, 2022)- P1,500,000· Savings Deposit in a closed bank- P100,000· IOU from employee- P20,000· Pension Fund- P3,000,000· Petty Cash Fund- P10,000· Customer’s Check dated January 1, 2022- P50,000· Customer’s Check outstanding for 18 months- P40,000· Unused credit line- P500, 000 Additional information:a. Check of P200, 000 in payment of accounts payable was recorded on December 31, 2021 but mailed to suppliers on January 5, 2022.b. Check of P100, 000 dated January 15, 2022, in payment of accounts payable was recorded and mailed on December 31, 2021.c. The company uses the calendar year. The Cash Receipt Journal was held open until January 15, 2022, during which time P400, 000 was…
MC33 On December 1, 2020, Kyle Corporation established a petty cash fund of P4,000. On December 31, 2020, the petty cash fund was examined and found to have receipts and documents for miscellaneous expenses amounting to P3,640. In addition, there was cash amounting to P440. What entry would be required to record replenishment of the petty cash fund on December 31, 2020? (with solution) a. Petty Cash — P3,640 Cash Short and Over — P80 Cash in Bank — P3,560 b. Miscellaneous Expense — P3,640 Cash Short and Over — P80 Petty Cash — P3,560 c. Miscellaneous Expense — P3,640 Cash Short and Over — P80 Cash in Bank — P3,560 d. Miscellaneous Expense — P3,560 Cash Short and Over — P80 Cash in Bank — P3,640