Balance Sheet June 30th, Year 5 Assets Cash 10,000 Accounts receivables 34,000 Inventory Prepaid Insurance Capital Assets Accumulated depreciation (40.000) Total Assets 268,000 60,000 4,000 200,000 Liabilities and Equity Accounts Payable Wages Payable Income Tax Payable Notes Payables Common Shares Retained Earnings Total Liabilities and Equity 268.000 The following are all transactions that happened during Year 6: Made all sales on account of $257,900 Collected accounts receivable of $255,760 Purchased merchandise on account of $134,000 19,000 4,000 1,000 80,000 100,000 64,000 Determined cost of goods sold was $140,000 Paid accounts payable (for merchandise purchased) of $143,000 Paid wages to employees of $52,500 Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6. Paid insurance premium of $18,000 to extend coverage for three years. Allocated $5,000 of prepaid insurance to insurance expense. Recorded Year 6 total income tax expense (and income tax payable) of $13,000 Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes). Depreciation for the year $10,000 Required 1: What is the amount of Cash received from customers? $ 255,760 Required 2: How much is the net income (loss) of the year 6? $ -39,900 Required 3: What is the amount of cash generated (used) by accounts receivables? $ 255,760 Required 4: What is amount of cash generated (used) by Operations in Year 6? $ 30,760 Required 5: What is ending balance of Cash at the end of Year 6? $ 40,760 Required 6: What is ending balance of Accounts Receivables at the end of Year 6? $ 36,140 Required 7: What is ending balance of Retained Earnings at the end of Year 6? $ 103,900
Balance Sheet June 30th, Year 5 Assets Cash 10,000 Accounts receivables 34,000 Inventory Prepaid Insurance Capital Assets Accumulated depreciation (40.000) Total Assets 268,000 60,000 4,000 200,000 Liabilities and Equity Accounts Payable Wages Payable Income Tax Payable Notes Payables Common Shares Retained Earnings Total Liabilities and Equity 268.000 The following are all transactions that happened during Year 6: Made all sales on account of $257,900 Collected accounts receivable of $255,760 Purchased merchandise on account of $134,000 19,000 4,000 1,000 80,000 100,000 64,000 Determined cost of goods sold was $140,000 Paid accounts payable (for merchandise purchased) of $143,000 Paid wages to employees of $52,500 Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6. Paid insurance premium of $18,000 to extend coverage for three years. Allocated $5,000 of prepaid insurance to insurance expense. Recorded Year 6 total income tax expense (and income tax payable) of $13,000 Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes). Depreciation for the year $10,000 Required 1: What is the amount of Cash received from customers? $ 255,760 Required 2: How much is the net income (loss) of the year 6? $ -39,900 Required 3: What is the amount of cash generated (used) by accounts receivables? $ 255,760 Required 4: What is amount of cash generated (used) by Operations in Year 6? $ 30,760 Required 5: What is ending balance of Cash at the end of Year 6? $ 40,760 Required 6: What is ending balance of Accounts Receivables at the end of Year 6? $ 36,140 Required 7: What is ending balance of Retained Earnings at the end of Year 6? $ 103,900
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 7E: Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December...
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