Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the following notes: Date Face Amount Interest Rate Term 1. Apr. 10 $54,000 4% 60 days 2. June 24 12,000 6 30 days 3. July 1 63,000 6 120 days 4. Oct. 31 63,000 5 60 days 5. Nov. 15 54,000 6 60 days 6. Dec. 27 180,000 4 30 days Required: Assume 360 days in a year. 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. Note (a) Due Date (b) Interest Due at Maturity (1) $fill in the blank f2d729f81fd1fab_2 (2) fill in the blank f2d729f81fd1fab_4 (3) fill in the blank f2d729f81fd1fab_6 (4) fill in the blank f2d729f81fd1fab_8 (5) fill in the blank f2d729f81fd1fab_10 (6) fill in the blank f2d729f81fd1fab_12 2. Journalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry, leave it blank or enter "0". fill in the blank 376320f3702106f_3 fill in the blank 376320f3702106f_4 fill in the blank 376320f3702106f_6 fill in the blank 376320f3702106f_7 fill in the blank 376320f3702106f_9 fill in the blank 376320f3702106f_10 3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Dec. 31 fill in the blank fd22e7035075fe5_2 fill in the blank fd22e7035075fe5_4 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. If an amount box does not require an entry, leave it blank or enter "0". Jan. 14 fill in the blank 894cc6fb5046f98_2 fill in the blank 894cc6fb5046f98_3 fill in the blank 894cc6fb5046f98_5 fill in the blank 894cc6fb5046f98_6 fill in the blank 894cc6fb5046f98_8 fill in the blank 894cc6fb5046f98_9 fill in the blank 894cc6fb5046f98_11 fill in the blank 894cc6fb5046f98_12 Jan. 26 fill in the blank 894cc6fb5046f98_14 fill in the blank 894cc6fb5046f98_15 fill in the blank 894cc6fb5046f98_17 fill in the blank 894cc6fb5046f98_18 fill in the blank 894cc6fb5046f98_20 fill in the blank 894cc6fb5046f98_21 fill in the blank 894cc6fb5046f98_23 fill in the blank 894cc6fb5046f98_24
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the following notes:
| Date | Face Amount | Interest Rate | Term | ||||
| 1. | Apr. 10 | $54,000 | 4% | 60 | days | ||
| 2. | June 24 | 12,000 | 6 | 30 | days | ||
| 3. | July 1 | 63,000 | 6 | 120 | days | ||
| 4. | Oct. 31 | 63,000 | 5 | 60 | days | ||
| 5. | Nov. 15 | 54,000 | 6 | 60 | days | ||
| 6. | Dec. 27 | 180,000 | 4 | 30 | days |
Required:
Assume 360 days in a year.
1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number.
| Note | (a) Due Date |
(b) Interest Due at Maturity |
|
| (1) | $fill in the blank f2d729f81fd1fab_2 | ||
| (2) | fill in the blank f2d729f81fd1fab_4 | ||
| (3) | fill in the blank f2d729f81fd1fab_6 | ||
| (4) | fill in the blank f2d729f81fd1fab_8 | ||
| (5) | fill in the blank f2d729f81fd1fab_10 | ||
| (6) | fill in the blank f2d729f81fd1fab_12 |
2.
| fill in the blank 376320f3702106f_3 | fill in the blank 376320f3702106f_4 | ||
| fill in the blank 376320f3702106f_6 | fill in the blank 376320f3702106f_7 | ||
| fill in the blank 376320f3702106f_9 | fill in the blank 376320f3702106f_10 |
3. Journalize the
| Dec. 31 | fill in the blank fd22e7035075fe5_2 | ||
| fill in the blank fd22e7035075fe5_4 |
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. If an amount box does not require an entry, leave it blank or enter "0".
| Jan. 14 | fill in the blank 894cc6fb5046f98_2 | fill in the blank 894cc6fb5046f98_3 | |
| fill in the blank 894cc6fb5046f98_5 | fill in the blank 894cc6fb5046f98_6 | ||
| fill in the blank 894cc6fb5046f98_8 | fill in the blank 894cc6fb5046f98_9 | ||
| fill in the blank 894cc6fb5046f98_11 | fill in the blank 894cc6fb5046f98_12 | ||
| Jan. 26 | fill in the blank 894cc6fb5046f98_14 | fill in the blank 894cc6fb5046f98_15 | |
| fill in the blank 894cc6fb5046f98_17 | fill in the blank 894cc6fb5046f98_18 | ||
| fill in the blank 894cc6fb5046f98_20 | fill in the blank 894cc6fb5046f98_21 | ||
| fill in the blank 894cc6fb5046f98_23 | fill in the blank 894cc6fb5046f98_24 |
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