How much cash payment for salaries will be presented of Robinson Company: Rent Expense Prepaid Rent, January 1 Prepaid Rent, December 31 P 3,100,000 500,000 720,000 Rent: Salaries Expense Salaries Payable, January 1 Salaries Payable, December 31 P 5,400,000 50,000 120,000 Salaries: Sales Revenue Accounts Receivable, January 1 Accounts Receivable, December 31 P18,000,000 1,500,000 800,000 Sales: P 2,000,000 320,000 190,000 Commission: Commission Income Unearned Commission, January 1 Unearned Commission, December 31 Required: In the cash flow statement, how much will be presented as collections from customers during 2018? (a) How much cash payment for rental will be presented under operating activities? (b) (c) under operating activities?

How much cash payment for salaries will be presented of Robinson Company: Rent Expense Prepaid Rent, January 1 Prepaid Rent, December 31 P 3,100,000 500,000 720,000 Rent: Salaries Expense Salaries Payable, January 1 Salaries Payable, December 31 P 5,400,000 50,000 120,000 Salaries: Sales Revenue Accounts Receivable, January 1 Accounts Receivable, December 31 P18,000,000 1,500,000 800,000 Sales: P 2,000,000 320,000 190,000 Commission: Commission Income Unearned Commission, January 1 Unearned Commission, December 31 Required: In the cash flow statement, how much will be presented as collections from customers during 2018? (a) How much cash payment for rental will be presented under operating activities? (b) (c) under operating activities?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 2SEQ: On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
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On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700
Agency XYZ collected the following income during the month: Income Taxes – Individual, P500,000; Income Taxes – Corporation, P1,800,000; Permit Fee, P400,000, Processing Fee 8,000, Rent Income 15,000 and Import Duties 400,000. The salary of the employees collecting these income amounts to P48,000. How much is the Total Revenue collected?
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Read the below information and answer the following questionsINFORMATIONExtract of the Statement of Comprehensive Income for the month ended 31 May 2022Sales 100 000Cost of sales 50 000Rent income 2 500Advertising 5 000Salaries and wages 15 000Rates and taxes 900Other operating expenses 20 000 Additional information1. Sales are expected to increase by 20% each month.2. Thirty percent (30%) of the sales is for cash and the balance is on credit. Collections from credit sales are asfollows:* 30% in the month of the sale, and these customers are entitled to a discount of 5%;* 65% in the month after the sale.The balance is usually written off as bad debts.3. Inventories are kept at a constant level. The business uses a fixed mark-up of 100% on cost. All purchases arefor cash.4. In terms of the lease agreement, the rental…
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