What will be the Total income a.206200b.All the options are wrong c.233300d.215200e.223200 The following balances are related to XYX LLC.Bank BalanceReturn InwardsSales16,000 Purchases1950004,000 Direct Wages18000425,000 Carriage Inwards35000Rent Received20,100 Return Outwards16000Interest Revenue15,600 office Expense15,000 office EquipmentMaintenance19,500Office Rent60004,200 Sales PromotionExpenseSalesman Salary4500Internet ChargesOpening StockOffice Insurance Expense6,500800Advertising Expense1800085000Dividend Income18200Commission Income20400Closing Stock55,000

Introduction: Income statement: All revenues and expenses are shown in income statement. Net income…

Answered: What will be the Total income a.…

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Accounting

What will be the Total income a. 206200 b. All the options are wrong c. 233300 d.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 18EB: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Assume that an organization asserts that it has $35 million in net accounts receivable. Describe specifically what management is asserting with respect to net accounts receivable.
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
Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
What accounting method (cash or accrual) would you recommend for the following businesses? a. A gift shop with average annual gross receipts of 900,000. b. An accounting partnership with average annual gross receipts of 12 million. c. A drywall subcontractor who works on residences and has annual gross receipts of 3 million. d. An incorporated insurance agency with average annual gross receipts of 28 million. e. A sole proprietor operating a retail clothing store with average annual gross receipts of 12 million. f. A sole proprietor operating a widget manufacturing plant with average annual gross receipts of 27 million.
Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Paid $22,000 cash on bonds payable. B. Collected $12,600 cash for a note receivable. C. Declared a dividend to shareholders for $16,000, to be paid in the future. D. Paid $26,500 to suppliers for purchases on account. E. Purchased treasury stock for $18,000 cash.
The following balances are related to XYX LLC . Bank Balance 16,000 Purchases 195000 Return Inwards 4,000 Direct Wages 18000 Sales 425,000 Carriage Inwards 35000 Rent Received 20,100 Return Outwards 16000 Interest Revenue 15,600 Office Expense 19,500 Office Rent 15,000 Office Equipment Maintenance 6000 Salesman Salary 4,200 Sales Promotion Expense 4500 Internet Charges 800 Advertising Expense 18000 Opening Stock 85000 Office Insurance Expense 6,500 Dividend Income 18200 Commission Income 20400 Closing Stock 55,000 1- What will be the total Selling and distribution expense? 2- What will be the Total income 3- What will be the total office expense?
Uptodate Projects Ltd has approached you to analyse and interpret their financial statements. The following amounts were extracted from the records of the company: 2019 2020 2021 R R R Turnover 200 000 220 000 250 000 Cost of sales 140 000 150 000 165 000 Profit before interest and tax 12 000 11 000 10 500 Accounts receivable 16 500 25 000 29 600 Accounts payable 13 000 14 700 17 000 Inventory 18 750 26 000 30 400 Bank/ (Overdraft) Required: 4 000 (1000) (2 000) Explain the purpose of financial statement Calculate each of the following ratios for each of the three (3) years: Accounts receivable collection period Inventory holding period Accounts payable payment period Current ratio Acid test ratio Comment on the company’s working capital management in light of the analysis undertaken in above
Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2019, 2020, and 2021. 2019 2020 2021 Cash receipts from sales: On 2019 sales $295,000 $160,000 $ 30,000 On 2020 sales –0– 355,000 90,000 On 2021 sales 408,000 Cash payments for expenses: On 2019 expenses 185,000 67,000 25,000 On 2020 expenses 40,000a 160,000 55,000 On 2021 expenses 45,000b 218,000 a Prepayments of 2020 expenses. b Prepayments of 2021 expenses. Instructions a. Using the data above, prepare abbreviated income statements for the years 2019 and 2020 on the cash basis. b. Using the data above, prepare abbreviated income statements for the years 2019…
PROBLEM 1BABY Corporation provided the following information:Balance per book, August 31 P2,000,000Receipts per book for August 4,400,000Disbursements per book for August 3,600,000Balance per bank, August 31 1,860,000Bank receipts for August 5,000,000Bank disbursements for August 3,940,000August collection of P200,000 recorded by the entity as 20,000August check in payment of account payable for P600,000 recorded by the entity as 60,000Deposit of BABE Corporation erroneously credited by bank to BABY Corporation 200,000August check of BABE Corporation erroneously charged by bank to BABY Corporation 400,000NSF Check: July 100,000August 50,000Note collected by bank for BABY Corporation: July 200,000August 300,000Deposit in transit: July 31 600,000August 31 480,000Outstanding checks July 31 100,000August 31 650,000 Requirement:Prepare a proof of cash for the month of August.
Which of these items belong on the statement of financial position (SOFP)? Debit Credit Buildibgs at cost 740 Buildings,accumulated depreciation 60 Plant at cost 220 Plant,accumulated depreciation 110 Bank balance 70 Revenue 1,800 Purchases…
The data below are from the records of Almanor, Inc. on December 31, 2021: Accounts payable net of supplier’s accounts with debit balances P 680,000 Cash balance in ABC Bank 1,240,000 Cash overdraft with XYZ Bank 80,000 Customers’ accounts with credit balances 25,000 Supplier’s accounts with debit balances 65,000 Dividends in arrears on preference shares 400,000 Employees’ income tax payable 100,000 Estimated warranty payable 50,000 Estimated premium claims outstanding 90,000 Income tax payable 320,000 Notes payable issued in 2020 maturing in 20 quarterly installments beginning April 1, 2021 8,000,000 Salaries payable 140,000 Deferred tax liability 80,000 9. The amount to be shown as total current liabilities on Almanor’s statement of financial position at December 31, 2021 is: