21. Cash flows during the first year ofoperations for the Harman-KardonConsulting Company were as follows:Cashcollected from customers, $120,000; Cashpaid for rent $40,000; Cash paid toemployees for services rendered during theyer, $120,000; Cash paid for utilities,$50,000.In addition, you determine thecustomers owed the company $60,000, atthe end of the year and no bad debts wereanticipated. Also, the company owed thegas and electric company $2,000 at year-end, and the rent payment was for a two-year period. Calculate acrual net income forthe year.

Answered: Image /qna-images/answer/c2993ec0-1f84-49ca-a058-5c6166cd7069.jpg

Answered: year period. Calculate acrual net…

Business

Accounting

year period. Calculate acrual net income for the year.

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

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.2E

See similar textbooks

Related questions

Q: What is the impact on the accounting equation when a current month’s utilityexpense is paid

A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…

Q: What is the balance of the Retained Earnings- Appropriated at December 31,2019?

A: Computation of net profit Net profit before tax 1500000 Add: Excess in depreciation expense…

Q: What is The Net unrealized Gain (Loss) each year? Is the Net unrealized Gain (Loss) taxable?

A: Formula: Unrealized gain ( Loss ) = Fair value of securities - amortized cost. Deduction of…

Q: Insurance of last year in adjustment where to adjust that insurance?

A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

Q: What is Zamora's share of the profit for the year? コフロ

A: In the Partnership , As per the agreement of Partnership, the Partners will be eligible to get…

Q: Calculate the adjusted net income

A: Adjusted net income of the business shows all incomes and all expenses of the business and at the…

Q: What is the RESTATED retained earnings in 2019 and 2020?

A: Pertinent Index number : Often it is seen that any amount which has intrinsic value or…

Q: Net Taxable Income

A: To calculate Taxable income / Net income we have to prepare income statement. No need to prepare…

Q: How would I determine January's net income?

A: An income statement is a financial statement used for reporting the financial performance of the…

Q: What is the importance of annual reports?

A: Introduction: An annual report is a document that public corporations are required to present to…

Q: What is Jensen's AGI for the current year?

A: CORRECT OPTION : D

Q: What is an annual report?

A: The accounting is a process to record the transactions of the business, and prepare the financial…

Q: How much should be shown in FIVE's 2021 income statement as gross rental income?

A: Gross rental income will be recognized on accrual basis in the income statement. Any advance rental…

Q: The unadjusted net income for the year 2019 is?

A: Net income before any adjustment is known as unadjusted income. Any expense or revenue which is not…

Q: Calculating income from investments in the middle of the year

A: (Amounts are in thousands) Given investment made in July 2011, Therefore KAR will be entitled for…

Q: me balance in a Registered Retirement Income - the beginning of each m +

A: Registered retirement income fund refers to the fund related to the annuity in which income is to…

Q: What is the adjusted net income for 2019?

A: 2019 Reported Net Income $ 4,00,000.00 Adjustments: a. Failed to record Accrued Expense…

Q: Convert from cash-basis net income to accrual-basis net income

A: Cash basis : Under cash basis of accounting, revenues and expenses are recorded only when cash is…

Q: Discuss the relative objectivity of the measurement process of accrual versus cash (pay-as-you-go)…

A: Pension is the regular payment allowed for an employee after their active working life. It is a…

Q: How much is the net income after income tax provision at December 31, 2003?

A: We need to calculate income tax provision first to find out net income after tax provision.

Q: urt approach allocates more propen urt and the IRS approaches allocate proach allocates interest…

A: The right answer is B The tax court and the IRS approaches allocate the same amount of expenses ,…

Q: How would each of the following items be reported on the balance sheet? Item Reported on…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: a. What is net income for 2018?

A: Net Income: Net income gets calculated when expenses get deducted from the total revenue. during the…

Q: How much is the Gross Profit/Loss Realized in 2019?

A: Gross Profit realized in 2019 (end of the contract)= Revenue - Cost incurred till date

Q: how much is the net remeasurement gain/loss at the end of the year?

A: Net re-measurement is the measurement which has been calculated by the company when all the losses…

Q: Net income

A: Definition: NET INCOME: It the amount earned during the year after making deductions such as…

Q: What is referred by unearned income? How is it adjusted in the final accounts?

A: Unearned income:Unearned income is known as deferred income or deferred revenue. It is the money…

Q: How can we determine the interest rate of a company from the annual report ? provide examples

A: Interest Expenses It is important for the business entity to calculate the interest cost which are…

Q: a. What amount of income should be reported for the current year if the percentage of completion…

A: Formula: Revenue Recognized= Cost Incurred to DateEstimated Total Cost×Contract Price-Revenue…

Q: What is the adjusted net income/loss in 2021? For net loss please put minus sign before the amount…

A: The net income for 2018, 2019 & 2020 has been provided. So the adjusted income/loss of the said…

Q: What is the tax payable on July 31?

A: Donor Taxes Donor taxes which are applicable for gift and donation which are paid to one party by…

Q: What is the unadjust

A: After audit certain item related to income and expenditure left to be adjusted in the books of…

Q: What is unearned income ,income recived in advance ?

A: Unearned income or Income received in advance: Earned revenue that represents to a future…

Q: Define the term fiscal year.

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: What is the investment income for 2019? What is the carrying amount of the investment in associate…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Calculate accrual net income for the year. Net income

A: Accrual net income shall be calculated considering the incomes and expenses incurred for such…

Q: Prepare the statement of comprehensive income for 2019.

A: Income Statement used to report a company's financial statement during the accounting period and…

Q: Which are the items that are likely to be included in the estimate of monthly housing expense?

A: Monthly housing expenses refer to expenses that would be incurred every month as a part of managing…

Q: WHat is Barth Income Statement 2019?

A: The question is based on the concept of income statement.

Q: Calculate Earning before interest Tax

A: EBIT (earnings before interest and taxes) is a company's net income before income tax expense and…

Q: 2013 income statement, what amount should Cordelli report as income tax expense?

A: As per our protocol we provide solution to the one question only but as you have asked two multiple…

Q: How much is the investment balance on December 31?

A: On January 1, Parent company acquired subsidiary = 90% Purchase consideration = 5400 shares @ P10…

Q: what amount should be reported as interest expense for 2021?

A: Borrowing cost means where the assets like building , take substantial time to build , then interest…

Q: How to make an annual report through measures of position?

A: Annual report is defined as the comprehensive report on the activities of the company in the…

Q: How much is the net income in 2021?

A: Net income refers to the income amount or value which is earned through the business or entity…

Q: In the year to 31 December 2oX8, Jason recorded some capital expenditure as revenue expenditure.…

A: Capital expenditures: These costs are incurred to extend the useful life, production capacity, and…

Question

21. Cash flows during the first year of
operations for the Harman-Kardon
Consulting Company were as follows:Cash
collected from customers, $120,000; Cash
paid for rent $40,000; Cash paid to
employees for services rendered during the
yer, $120,000; Cash paid for utilities,
$50,000.In addition, you determine the
customers owed the company $60,000, at
the end of the year and no bad debts were
anticipated. Also, the company owed the
gas and electric company $2,000 at year-
end, and the rent payment was for a two-
year period. Calculate acrual net income for
the year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Swasey Company earned net income of 1,800,000 in 20X2. Swasey provided the following information: Required: Compute the financing cash flows for the current year.
Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Statement of Cash Flows Colorado Corporation was organized at the beginning of the year, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,000 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $93,970 from its customers. It paid $65,600 for inventory, $20,400 in salaries and wages, and another $3,100 in taxes. Colorado paid $5,600 in cash dividends. Required Prepare a statement of cash flows for the year. What does this statement tell you that an income statement does not?
In the current year, Harrisburg Corporation collected 100,000 from its customers and paid out 30,000 to suppliers, 20,000 to employees, and 8,000 for income taxes. Using the direct method, prepare the operating activities section of its statement of cash flows based on this information.
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
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?