12 Purchased supplies for P1,500 on account. 15 Received cash of P12,500 for services provided on June 5. 17 Purchased gasoline for P7,500 on account. 20 Received P15,000 from customers of which P5,000 was for past accounts. 23 Made a cash payment of P25,000 on the note payable. 26 Received bills for utilities P5,000 but paid only P2,500. Paid for the gasoline purchased on account on June 17. 29 30 Paid P30,000 for employee salaries. A third of supplies remained on hand, Instructions: a. Show the effects of the above transactions on the accounting equation using the following format. Date Cash Accounts Receivable Delivery Van Notes Accounts Fedor, Capital Revenues Account Title Payable Payable (Drawings) (Expenses) Supplies b. Prepare an income statement for the month of July. c. Prepare a classified statement of financial position as at July 31
12 Purchased supplies for P1,500 on account. 15 Received cash of P12,500 for services provided on June 5. 17 Purchased gasoline for P7,500 on account. 20 Received P15,000 from customers of which P5,000 was for past accounts. 23 Made a cash payment of P25,000 on the note payable. 26 Received bills for utilities P5,000 but paid only P2,500. Paid for the gasoline purchased on account on June 17. 29 30 Paid P30,000 for employee salaries. A third of supplies remained on hand, Instructions: a. Show the effects of the above transactions on the accounting equation using the following format. Date Cash Accounts Receivable Delivery Van Notes Accounts Fedor, Capital Revenues Account Title Payable Payable (Drawings) (Expenses) Supplies b. Prepare an income statement for the month of July. c. Prepare a classified statement of financial position as at July 31
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter23: Statement Of Cash Flows
Section: Chapter Questions
Problem 7SEB
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13. Refer to Exercise 12. Look for the cash on the format you did and analyze its movement (inflow or outflow) in a working paper. Did the cash increase? Explain by citing the net flow of cash in the operating, financing and investing activities of the business.
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