The following transactions affected the Cash account of FDNACCT Co.: Collection from customers = P430,000 Proceeds from sale of furniture = P12,000 Proceeds from bank loan = P88,000 Additional investment from owner = P200,000 Purchase of equipment = P54,000 Payment of interest to bank = P8,000 Payment of operating expenses = P210,000 Withdrawal by owner = P49,000 How much is cash provided by (used in) Operating Activities? Enter as a

The following transactions affected the Cash account of FDNACCT Co.: Collection from customers = P430,000 Proceeds from sale of furniture = P12,000 Proceeds from bank loan = P88,000 Additional investment from owner = P200,000 Purchase of equipment = P54,000 Payment of interest to bank = P8,000 Payment of operating expenses = P210,000 Withdrawal by owner = P49,000 How much is cash provided by (used in) Operating Activities? Enter as a

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter12A: The Statement Of Cash Flows

Section: Chapter Questions

Problem 1P: Mahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase...

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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. issued stock for cash $20,000 B. purchased supplies inventory on account $1,800 C. paid employee salaries; assume it was current days expenses $950 D. paid note payment to bank (principal only) $1,200 E. collected balance on accounts receivable $4,750
Provide journal entries to record each of the following transactions. For each, also identify: *the appropriate section of the statement of cash flows, and **whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. reacquired $30,000 treasury stock B. purchased inventory for $20,000 C. issued common stock of $40,000 at par D. purchased land for $25,000 E. collected $22,000 from customers for accounts receivable F. paid $33,000 principal payment toward note payable to bank
Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities? a. $(5,200) b. $55,200 c. $144,800 d. None of these
Thompson Company sold a piece of equipment that had an original cost of 22,000 and a carrying value of 10,000 for 13,000 in cash. How would this information be reported on a statement of cash flows prepared using the indirect method?
Which item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.
Jarem Company showed 189,000 in prepaid rent on December 31, 20X1. On December 31, 20X2, the balance in the prepaid rent account was 226,800. Rent expense for 20X2 was 472,500. Required: 1. What amount of cash was paid for rent in 20X2? 2. CONCEPTUAL CONNECTION What adjustment in prepaid expenses is needed if the indirect method is used to prepare Jarems statement of cash flows?
The following balance sheets and income statement were taken from the records of Rosie-Lee Company: Additional transactions were as follows: a. Sold equipment costing 21,600, with accumulated depreciation of 16,200, for 3,600. b. Issued bonds for 90,000 on December 31. c. Paid cash dividends of 36,000. d. Retired mortgage of 108,000 on December 31. Required: 1. Prepare a schedule of operating cash flows using (a) the indirect method and (b) the direct method. 2. Prepare a statement of cash flows using the indirect method.
Mahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase of equipment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 76,800
Provide journal entries to record each of the following transactions. For each, also identify *the appropriate section of the statement of cash flows, and s utility bill, $1,500
Bety Corp bought a machine used in production for $100,000 and paid for it through the issuance of a long-term note accepted by the seller, Sigma Inc. What component of the statement of cash-flows of Bety was affected ? Select all that apply. A)Total operating cashflows. B)Total investing cashflows. C)Total financing cashflows D)Neither total operating, total investing nor total financing cash-flows will be affected.
The June 30, 2022 statement of financial position of Red Corporation shows a cash balance of P1,350,700. Included in the said amount were the following items: Petty cash fund (including expense receipts of P3,150)-P5,000; Sinking fund cash-P350,000; Payroll fund maintained with Metrobank- P275,000 ; Savings account at Banco de Oro-P120,800; Un-deposited collections P36,420; Cash in foreign bank (in equivalent pesos)-P72,000; Customer’s check on hand: Traveler’s check-P40,450; certified check-P17,120; customer’s check dated July 10, 2022, P26,450; 90-day BSP treasury bonds- P 150,000; 120-day BSP treasury bills-P250,000. What is the correct amount of cash and cash equivalents of Red Corporation at June 30, 2022?
The following is a list of various cash payments and cashreceipts:Cash paid to suppliers and employees . . . . . . . . $420,000Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000Purchases of plant assets . . . . . . . . . . . . . . . . . 45,000Interest and dividends received . . . . . . . . . . . . . 17,000Payments to settle short-term bank loans . . . . . 29,000Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . 23,000Cash received from customers . . . . . . . . . . . . . 601,000 Based only on the above items, net cash flows from operat-ing activities are: a. $138,000b. $91,000c. $120,000d. $163,000