I need to resolve both P exercises as practice but I don't understand it. Classify transactions asE3-18 Review the transactions listed in E3-1 for Warner Advertising Company and clas-or if no cash is exchanged, as a noncash event.sify each transaction as either an operating activity, investing activity, or financing activity, cash-flow activities.(LO 9), APE3-19 Review the transactions listed in E3-3 for Persinger Corp. and classify each trans-action as either an operating activity, investing activity, or financing activity, or if no cashis exchanged, as a noncash event.Exercises: Set B andChallenge ExercisesVisit the book's companion website, at www.wiley.com/college/kimmel, and choose theStudent Companion site to access Exercise Set B and Challenge Exercises.Problems: Set AP3-1A On April 1, DeDonder Travel Agency Inc. was established. These transactionswere completed during the month.1. Stockholders invested $30,000 cash in the company in exchange for common stock.2. Paid $900 cash for April office rent.3. Purchased office equipment for $3,400 cash.4. Purchased $200 of advertising in the Chicago Tribune, on account.5. Paid $500 cash for office supplies.6. Performed services worth $12,000. Cash of $3,000 is received from customers, and thebalance of $9,000 is billed to customers on account.7. Paid $400 cash dividends.8. Paid Chicago Tribune amount due in transaction (4).9. Paid employees' salaries $1,800.10. Received $9,000 in cash from customers billed previously in transaction (6).P3-2A Nina Finzelberg started her own consulting firm, Finzelberg Consulting Inc., onMay 1, 2014. The following transactions occurred during the month of May.May 1Stockholders invested $15,000 cash in the business in exchange for commonstock.Paid $500 for office rent for the month.Purchased $500 of supplies on account.Paid $150 to advertise in the County News.Received $1,400 cash for services performed.Paid $200 cash dividend.InstructionsTotal assets(a) Prepare a tabular analysis of the transactions using these column headings: Cash, (a) CashAccounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, andRetained Earnings (with separate columns for Revenues, Expenses, and Dividends).Include margin explanations for any changes in Retained Earnings.(b) From an analysis of the Retained Earnings columns, compute the net income or netloss for April.235912151720232629Performed $4,200 of services on account.Paid $2,500 for employee salaries.Paid for the supplies purchased on account on May 3.Received a cash payment of $1,200 for services performed on account onMay 15.Borrowed $5,000 from the bank on a note payable.Purchased office equipment for $2,000 paying $200 in cash and the balanceClassify transactions ascash-flow activities.(LO 9), APon account.Paid $180 for utilities.Analyze transactions andcompute net income.(LO 1), APGLSXLSGLSAnalyze transactions andprepare financial statements.(LO 1), AP$34,800$38,70030Instructions(a) Show the effects of the previous transactions on the accounting equation using the (a) Cashfollowing format. Assume the note payable is to be repaid within the year.Total assets$18,270$23,770

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P3-1A On April 1, DeDonder Travel Agency Inc. was established. These transactions were completed during the month. 1. Stockholders invested $30,000 cash in the company in exchange for common stock. 2. Paid $900 cash for April office rent. 3. Purchased office equipment for $3,400 cash. 4. Purchased $200 of advertising in the Chicago Tribune, on account. 5. Paid $500 cash for office supplies. 6. Performed services worth $12,000. Cash of $3,000 is received from customers, and the balance of $9,000 is billed to customers on account. 7. Paid $400 cash dividends. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees' salaries $1,800. 10. Received $9,000 in cash from customers billed previously in transaction (6). Instructions (a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any changes in Retained Earnings. (b) From an analysis of the Retained Earnings columns, compute the net income or net loss for April.

P3-1A On April 1, DeDonder Travel Agency Inc. was established. These transactions were completed during the month. 1. Stockholders invested $30,000 cash in the company in exchange for common stock. 2. Paid $900 cash for April office rent. 3. Purchased office equipment for $3,400 cash. 4. Purchased $200 of advertising in the Chicago Tribune, on account. 5. Paid $500 cash for office supplies. 6. Performed services worth $12,000. Cash of $3,000 is received from customers, and the balance of $9,000 is billed to customers on account. 7. Paid $400 cash dividends. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees' salaries $1,800. 10. Received $9,000 in cash from customers billed previously in transaction (6). Instructions (a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any changes in Retained Earnings. (b) From an analysis of the Retained Earnings columns, compute the net income or net loss for April.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.21MCE

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Match the following assertions with their associated description: (a) existence/occurrence, (b) completeness. (c) rights and obligations, (d) valuation or allocation, (e) presentation and disclosure. 1. Cash accounts arc properly classified on the balance sheet and disclosed in the notes to the financial statements. 2. Cash balances exist at the balance sheet date. 3. The recorded balances reflect the true underlying economic value of those assets. 4. The company has title to the cash accounts as of the balance sheet date. 5. Cash balances include all cash transactions that have taken place during the period.
Brief 1-28 Statement of Cash Flows Listed are items that would on a Statement of cash flows. Cash received from customers Cash paid for dividends Cash received from a bank loan Cash paid to suppliers Cash paid to purchase Required: Indicate in which part of the statement of cash flows each of the items would appear: operating activities (O), investing activities (I), or financing activities (F).
In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. collected accounts receivable from customers B. issued common stock for cash C. declared and paid dividends D. paid accounts payable balance E. sold a long-term asset for the same amount as purchased
Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows? A. credit purchase of inventory B. sales of product, for cash C. cash paid for purchase of equipment D. salary payments to employees
Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? A. $350 would show up on the balance sheet as a sale. B. $350 would show up on the income statement as a sale. C. $350 would show up on the statement of cash flows as a cash outflow. D. The transaction would not be reported because the cash was not exchanged.
In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. paid advertising expense B. paid dividends to shareholders C. purchased business equipment D. sold merchandise to customers E. purchased plant assets
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. paid balance due for accounts payable $6,900 B. charged clients for legal services provided $5,200 C. purchased supplies on account $1,750 D. collected legal service fees from clients for current month $3,700 E. issued stock in exchange for a note payable $10,000
Reporting Net Cash Flow from Operating Activities The following information is available for Cornelius Inc: Required: 1. Compute the net cash flows from operating activities using the indirect method. 2. CONCEPTUAL CONNECTION Explain why Cornelius was able to report net cash flow from operating activities that was higher than net income. 3. CONCEPTUAL CONNECTION What could the difference between net income and cash flow from operating activities signal to financial statement users?
Which of the following sentences regarding the statement of cash flows is false? The statement of cash flows describes the companys cash receipts and cash payments for a period of time. The statement of cash flows reconciles the beginning and ending cash balances shown on the balance sheet. The statement of cash flows reports cash flows in three categories: cash flows from business activities, cash flows from investing activities, and cash flows from financing activities. The statement of cash flows may be used by creditors to asses the creditworthiness of a company.
Which of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliers
Cornerstone Exercise 1-16 Financial Statements Listed below are elements of the financial statements. a. Liabilities b. Net change in cash c. Assets d. Revenue Required: e. Cash flow from operating activities f. Expenses g. Stockholders' equity h. Dividends Match each financial statement item with its financial statement: balance sheet (B), income statement (I), retained earnings statement (RE), or statement of cash flows (CF).
In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. borrowed from the bank for business loan B. declared dividends, to be paid next year C. purchased treasury stock D. purchased a two-year insurance policy E. purchased plant assets