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Journal entry worksheet A C E F > Record the summary journal entry showing cash paid for insurance during the reporting period. Note: Enter debits before credits. Event General Journal Debit Credit е. Record entry Clear entry View general journal

Journal entry worksheet A C E F > Record the summary journal entry showing cash paid for insurance during the reporting period. Note: Enter debits before credits. Event General Journal Debit Credit е. Record entry Clear entry View general journal

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 20E
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The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $150.20 (90.10) Cost of goods sold Gross margin Salaries expense 60.10 $20.20 Insurance expense 12.20 Depreciation expense Interest expense 5.10 6.10 (43.60) Gains and losses: Gain on sale of equipment 12.20 Loss on sale of land (3.20) Income before tax 25.50 Income tax expense (12.75) $ 12.75 Net income Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income $ 12.75 Adjustments for noncash effects: Decrease in accounts receivable 5.10 Gain on sale of equipment Increase in inventory (12.20) (6.10) Increase in accounts payable Increase in salaries payable Depreciation expense 9.10 3.10 5.10 Decrease in bond discount 3.05 Decrease in prepaid insurance 2.10 Loss on sale of land 3.20 Increase in income tax payable 6.10 Net cash flows from operating activities $ 31.30 Required: 1. Provide the summary journal entries which shows the cash flow for each of the following for Mike Roe Computers during the reporting period: (a) received from customers, (b) paid to suppliers, (c) paid to employees, (d) paid for interest, (e) paid for insurance, (f) paid for income taxes.
Transcribed Image Text:The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $150.20 (90.10) Cost of goods sold Gross margin Salaries expense 60.10 $20.20 Insurance expense 12.20 Depreciation expense Interest expense 5.10 6.10 (43.60) Gains and losses: Gain on sale of equipment 12.20 Loss on sale of land (3.20) Income before tax 25.50 Income tax expense (12.75) $ 12.75 Net income Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income $ 12.75 Adjustments for noncash effects: Decrease in accounts receivable 5.10 Gain on sale of equipment Increase in inventory (12.20) (6.10) Increase in accounts payable Increase in salaries payable Depreciation expense 9.10 3.10 5.10 Decrease in bond discount 3.05 Decrease in prepaid insurance 2.10 Loss on sale of land 3.20 Increase in income tax payable 6.10 Net cash flows from operating activities $ 31.30 Required: 1. Provide the summary journal entries which shows the cash flow for each of the following for Mike Roe Computers during the reporting period: (a) received from customers, (b) paid to suppliers, (c) paid to employees, (d) paid for interest, (e) paid for insurance, (f) paid for income taxes.
Journal entry worksheet A D E F > Record the summary journal entry showing cash paid for insurance during the reporting period. Note: Enter debits before credits. Event General Journal Debit Credit е. Record entry Clear entry View general journal
Transcribed Image Text:Journal entry worksheet A D E F > Record the summary journal entry showing cash paid for insurance during the reporting period. Note: Enter debits before credits. Event General Journal Debit Credit е. Record entry Clear entry View general journal
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