dont give answer in image format The KM Company experienced the following events for the year 2022:1. Acquired $80,000 cash from the issue of common stock.2. Purchased $50,000 inventory on account.3. Received goods purchased in event 2, FOB shipping point: freight cost of $1,000 paid in cash.4. Sold inventory on account cost $40,000 for $85,000.5. Freight cost on the goods sold in event 4 was $760. The goods were shipped FOB destination. Cash was paid for the freightcost.6. Customer in the event 4 returned goods $5,000 worth of goods that had a cost of $2,500.7. Collected $50,000 cash from accounts receivable.8. Paid $30,500 cash on accounts payable.9. Paid $4,000 cash for advertising expense.10. Paid $3,000 cash for General expense.Required:Record the above events in a horizontal statements modelb. Prepare a multistep income statementa.

A horizontal statements model is the model which is made by the company in which all the…

Answered: Record the above events in a horizontal…

Business

Accounting

Record the above events in a horizontal statements model b. Prepare a multistep income statement

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
Presented below is information related to Ivan Calderon Corp. for the year 2025. Net sales $1,300,000 Write-off inventory due to obsolescence $80,000 Cost of goods sold 780,000 Depreciation expense omitted by accident in 2024 55,000 Selling expenses 65,000 Casualty loss 50,000 Administrative expenses 48,000 Cash dividends declared 45,000 Dividend revenue 20,000 Retained earnings at December 31, 2024 980,000 Interest revenue 7,000 Effective tax rate of 20% on all items Prepare a multiple-step income statement for 2025. Assume that 60,000 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 149).
The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. Issued 41,000 shares of no-par common stock in exchange for $410,000 in cash. Purchased equipment at a cost of $51,000. Cash of $15,500 was paid and a note payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $100,000. The company uses the perpetual inventory system. Credit sales for the month totaled $175,000. The cost of the goods sold was $81,000. Paid $6,100 in rent on the warehouse building for the month of March. Paid $7,100 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. Paid $81,000 on account for the inventory purchased in transaction 3. Collected $66,000 from customers on account. Recorded depreciation expense of $2,100 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the…
Dune Ltd has operating profit for the year ended 30 June 2021 of £56,300, after chargingdepreciation of £18,500 and making a profit on the disposal of a car of £1,000. The balance sheetshows the following:2020 2021 £ £Inventory 8,500 13,200Trade Receivables 17,000 15,500Trade Payables 12,600 14,200What is the net cash from operating activities?a) £71,200b) £72,200c) £78,100d) £77,100
On December 1, 2022, Crane Company had the account balances shown below.Debit CreditCash $5,500 Accumulated Depreciation—Equipment $1,500Accounts Receivable 4,200 Accounts Payable 3,600Inventory 2,400 * Owner’s Capital 27,000Equipment 20,000$32,100 $32,100*(4,000 x $0.60)The following transactions occurred during December:Dec. 3 Purchased 4,200 units of inventory on account at a cost of $0.74 per unit.5 Sold 4,600 units of inventory on account for $0.90 per unit. (Crane sold 4,000 of the$0.60 units and 600 of the $0.74.)7 Granted the December 5 customer $201 credit for 200 units of inventory returnedcosting $134. These units were returned to inventory.17 Purchased 2,200 units of inventory for cash at $0.80 each.22 Sold 3,100 units of inventory on account for $0.95 per unit. (Crane sold 3,100 of the$0.74 units.
On December 1, 2022, Crane Company had the account balances shown below.Debit CreditCash $5,500 Accumulated Depreciation—Equipment $1,500Accounts Receivable 4,200 Accounts Payable 3,600Inventory 2,400 * Owner’s Capital 27,000Equipment 20,000$32,100 $32,100*(4,000 x $0.60)The following transactions occurred during December:Dec. 3 Purchased 4,200 units of inventory on account at a cost of $0.74 per unit.5 Sold 4,600 units of inventory on account for $0.90 per unit. (Crane sold 4,000 of the$0.60 units and 600 of the $0.74.)7 Granted the December 5 customer $201 credit for 200 units of inventory returnedcosting $134. These units were returned to inventory.17 Purchased 2,200 units of inventory for cash at $0.80 each.22 Sold 3,100 units of inventory on account for $0.95 per unit. (Crane sold 3,100 of the$0.74 units. question a) Enter the December 1 balances in the ledger T-accounts and post the December transactions.(Post entriesin the order of journal entries presented above.)CashDec. 1…
Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales $1,300,000 Write-off of inventory due to obsolescence $ 80,000 Cost of goods sold 780,000 Depreciation expense omitted by accident in 2019 55,000 Selling expenses 65,000 Casualty loss 50,000 Administrative expenses 48,000 Cash dividends declared 45,000 Dividend revenue 20,000 Retained earnings at December 31, 2019 980,000 Interest revenue 7,000 Effective tax rate of 20% on all items Instructions a. Prepare a multiple-step income statement for 2020. Assume that 60,000 shares of common stock are outstanding for the entire year. b. Prepare a separate retained earnings statement for 2020.
The following balances were extracted from the books of accounts of Thomas as at 31 May 2021: RM RM Capital Account – Thomas 72,700 Furniture and fittings 10,000 Accumulated depreciation - furniture and fittings 2,300 Purchases 200,800 Sales 310,000 Inventory at 1 June 2020 19,000 Trade Receivables 16,600 Trade Payables 21,000 Machinery 40,000 Accumulated depreciation – machinery 5,000 Carriage inwards 345 General expenses 44,567 Rent 5,200 Allowance for doubtful debts 350 Bad debts 1,030 Discount received 550 Salaries 13,333 Insurance 450 Drawings – Thomas 7,575 Bank 60,000 Loan from bank 10,000 Interest on loan 3,000 421,900 421,900 Additional information: RM 1. Inventory as at 31 May 2021 15,200 2. Salaries outstanding at 31 May 2021 1,500 3. The allowance for doubtful debts is to be maintained at 300 4. The machinery is to be depreciated using the reducing balance method at the rate of 25% 5. Depreciation is to be provided on the cost of furniture at 10% 6. Rent prepaid for the…
The following transactions occurred during the month of June 2024 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 55,000 shares of common stock in exchange for $275,000 cash. Purchased office equipment at a cost of $53,750. Cash of $21,500 was paid and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $110,000. The company uses the perpetual inventory system. Credit sales for the month totaled $187,000. The cost of the goods sold was $93,500. Paid $2,250 in rent on the store building for the month of June. Paid $1,320 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2024. Paid $79,475 on account for the inventory purchased in transaction 3. Collected $37,400 from customers on account. Paid shareholders a cash dividend of $2,750. Received cash of $1,075 from customers in advance of services to be provided. Required: Prepare journal entries to record each…
The records of Brenda Corporation at December 31, 2021 showed the following balances: Uncollectible accounts expense 2,000,000, Administrative expenses 10,000,000, Freight out 3,500,000, Finished goods inventory, Jan 1 60,000,000, Cost of sales 40,000,000, Sales commissions 7,000,000, Loss on sale of equipment 1,500,000, Finished goods inventory, Dec 31 55,000,000, Sales 90,000,000 Interest income 4,000,000Based on the information given above, compute for the following1. What is the total operating expenses2. What is the net income or loss
Presented below is information related to Sheridan Corp. for the year 2020. Net sales $ 1,196,000 Write-off of inventory due to obsolescence $ 73,600 Cost of goods sold 717,600 Depreciation expense omitted by accident in 2019 50,600 Selling expenses 59,800 Casualty loss 46,000 Administrative expenses 44,160 Cash dividends declared 41,400 Dividend revenue 18,400 Retained earnings at December 31, 2019 901,600 Interest revenue 6,440 Effective tax rate of 20% on all items SHERIDAN CORP.Income Statement For the Year Ended December 31, 2020 Particulars Amount Amount Net Sales $11,96,000 Cost of Good Sold $7,17,600 Gross Profit $4,78,400 Operating Expenses Selling Expenses $59,800 Administrative Expenses $44,160 Total Operating Expenses $1,03,960 Income from Operations $3,74,440 Other Revenues and Gains Dividend Revenue $18,400 Interest $6,440 $24,840…
The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 30,000 shares of capital stock in exchange for $300,000 in cash. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. Paid $5,000 in rent on the warehouse building for the month of March. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018. Paid $70,000 on account for the merchandise purchased in 3. Collected $55,000 from customers on account. Recorded depreciation expense of $1,000 for the month on the equipment. Required:1. Analyze each transaction by indicating the cash effect and classify each as a financing, investing, and/or…