Homework Help is Here – Start Your Trial Now!
Business
Accounting
ipped Book Hint w Exercise 3-14A (Algo) Effect of accounting events on the income statement and statement of cash flows LO 3-1, 3-2, 3-3 Required: Explain how each of the following events or series of events and the related adjustments will affect the amount of net income and the amount of cash flow from operating activities reported on the year-end financial statements. Identify the direction of change (increase, decrease) and the amount of the change. Organize your answers according to the following table. The first event is recorded as an example. If an event does not have a related adjustment, record only the effects of the event. Note: Not all cells require entry. Do not round intermediate calculations and round your final answers to nearest whole dollar amount. a. Paid $2,900 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,000 of supplies on account. Paid $750 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $300. c. Provided services for $7,500 cash. d. Collected $10,500 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $3,400. f. Sold land that cost $17,200 for $17,200 cash. g. Acquired $45,500 cash from the issue of common stock. h. Earned $13,900 of revenue on account. Collected $12,510 cash from accounts receivable. 1. Paid cash operating expenses of $2,000. Event/ Adjustment Net Income Direction of Change a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment Amount of Change $ 725 Cash Flows from Operating Activities Direction of Change Decrease Amount of Change $ 2,900 < Prev 4 of 7 Next >

ipped Book Hint w Exercise 3-14A (Algo) Effect of accounting events on the income statement and statement of cash flows LO 3-1, 3-2, 3-3 Required: Explain how each of the following events or series of events and the related adjustments will affect the amount of net income and the amount of cash flow from operating activities reported on the year-end financial statements. Identify the direction of change (increase, decrease) and the amount of the change. Organize your answers according to the following table. The first event is recorded as an example. If an event does not have a related adjustment, record only the effects of the event. Note: Not all cells require entry. Do not round intermediate calculations and round your final answers to nearest whole dollar amount. a. Paid $2,900 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,000 of supplies on account. Paid $750 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $300. c. Provided services for $7,500 cash. d. Collected $10,500 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $3,400. f. Sold land that cost $17,200 for $17,200 cash. g. Acquired $45,500 cash from the issue of common stock. h. Earned $13,900 of revenue on account. Collected $12,510 cash from accounts receivable. 1. Paid cash operating expenses of $2,000. Event/ Adjustment Net Income Direction of Change a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment Amount of Change $ 725 Cash Flows from Operating Activities Direction of Change Decrease Amount of Change $ 2,900 < Prev 4 of 7 Next >

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 4E
See similar textbooks
icon
Related questions
Question
S sipped Book Hint aw 11 Exercise 3-14A (Algo) Effect of accounting events on the income statement and statement of cash flows LO 3-1, 3-2, 3-3 Required: Explain how each of the following events or series of events and the related adjustments will affect the amount of net income and the amount of cash flow from operating activities reported on the year-end financial statements. Identify the direction of change (increase, decrease) and the amount of the change. Organize your answers according to the following table. The first event is recorded as an example. If an event does not have a related adjustment, record only the effects of the event. Note: Not all cells require entry. Do not round intermediate calculations and round your final answers to nearest whole dollar amount. a. Paid $2,900 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,000 of supplies on account. Paid $750 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $300. c. Provided services for $7,500 cash. d. Collected $10,500 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $3,400. f. Sold land that cost $17,200 for $17,200 cash. g. Acquired $45,500 cash from the issue of common stock. h. Earned $13,900 of revenue on account. Collected $12,510 cash from accounts receivable. 1. Paid cash operating expenses of $2,000. Event/ Adjustment Net Income Direction of Change a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment Amount of Change $ 725 Cash Flows from Operating Activities Direction of Amount of Change Change Decrease $ 2,900 < Prev 4 of 7 Next >
Transcribed Image Text:S sipped Book Hint aw 11 Exercise 3-14A (Algo) Effect of accounting events on the income statement and statement of cash flows LO 3-1, 3-2, 3-3 Required: Explain how each of the following events or series of events and the related adjustments will affect the amount of net income and the amount of cash flow from operating activities reported on the year-end financial statements. Identify the direction of change (increase, decrease) and the amount of the change. Organize your answers according to the following table. The first event is recorded as an example. If an event does not have a related adjustment, record only the effects of the event. Note: Not all cells require entry. Do not round intermediate calculations and round your final answers to nearest whole dollar amount. a. Paid $2,900 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,000 of supplies on account. Paid $750 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $300. c. Provided services for $7,500 cash. d. Collected $10,500 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $3,400. f. Sold land that cost $17,200 for $17,200 cash. g. Acquired $45,500 cash from the issue of common stock. h. Earned $13,900 of revenue on account. Collected $12,510 cash from accounts receivable. 1. Paid cash operating expenses of $2,000. Event/ Adjustment Net Income Direction of Change a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment Amount of Change $ 725 Cash Flows from Operating Activities Direction of Amount of Change Change Decrease $ 2,900 < Prev 4 of 7 Next >
Continue to one year. e. Accrued salaries amounting to $3,400. f. Sold land that cost $17,200 for $17,200 cash. g. Acquired $45,500 cash from the issue of common stock. h. Earned $13,900 of revenue on account. Collected $12,510 cash from accounts receivable. i. Paid cash operating expenses of $2,000. Event/ Adjustment a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment e. Adjustment f. Adjustment g. Adjustment h. Net Income Direction of Amount of Change Change Adjustment i. Adjustment 41° $ 725 Hi Cash Flows from Operating Activities Amount of Change Direction of Change Decrease $ 2,900 < Prev O 4 of 7 ‒‒‒ www Next
Transcribed Image Text:Continue to one year. e. Accrued salaries amounting to $3,400. f. Sold land that cost $17,200 for $17,200 cash. g. Acquired $45,500 cash from the issue of common stock. h. Earned $13,900 of revenue on account. Collected $12,510 cash from accounts receivable. i. Paid cash operating expenses of $2,000. Event/ Adjustment a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment e. Adjustment f. Adjustment g. Adjustment h. Net Income Direction of Amount of Change Change Adjustment i. Adjustment 41° $ 725 Hi Cash Flows from Operating Activities Amount of Change Direction of Change Decrease $ 2,900 < Prev O 4 of 7 ‒‒‒ www Next
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS