Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Chapter 1, Problem 1.1E
To determine
Introduction: Cash flow statement shows the in flow and out flow of cash. It categorizes each cash transaction into three types of activities i.e., operating, investing and financing activities.
To categorize: Business activities as operating (O), investing (I) and financing (F) activity.
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Classifying Business Transactions
Bob Jacobs opened an advertising agency. The following transactions occurred during January of the current year. Classify each transaction as an operating, an investing, or a financing activity.
a.
Invested cash in the business, $5,000.
b.
Purchased office equipment. Paid $2,500 cash and agreed to paythe balance of $2,000 in four monthly installments.
c.
Paid office rent, $400.
d.
Received cash for services rendered, $700.
e.
Paid phone bill, $95.
f.
Received cash for services rendered, $600.
g.
Made payment on loan in transaction (b), $500.
h.
Paid wages to part-time employee, $800.
i.
Paid electricity bill, $100.
j.
Withdrew cash for personal use, $500.
k.
Paid wages to part-time employee, $600.
Use the following information for the Exercises below. (Algo)
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[The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and amounts.
Cash
$ 7,950
Cash dividends
$ 3,070
Accounts receivable
17,450
Consulting revenue
17,450
Office supplies
4,200
Rent expense
4,530
Office equipment
19,060
Salaries expense
8,090
Land
46,010
Telephone expense
880
Accounts payable
9,430
Miscellaneous expenses
690
Common stock
85,050
[The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $82,780 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and amounts.
Cash
$ 15,760
Cash dividends
$ 640
Accounts receivable
12,590
Consulting revenue
12,590
Office supplies
1,960
Rent expense
2,270
Office equipment
16,580
Salaries expense
5,450
Land
46,030
Telephone expense
760
Accounts payable
7,250
Miscellaneous expenses
580
Common stock
82,780
Use the above information to prepare a December 31 balance sheet for Ernst Consulting.
Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 1 - Prob. 1.1KTQCh. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - The Accounting Equation For each of the following...Ch. 1 - The Accounting Equation Ginger Enterprises began...Ch. 1 - The Accounting Equation Using the accounting...Ch. 1 - Changes in Owners Equity The following amounts are...Ch. 1 - The Accounting Equation For each of the following...Ch. 1 - Classification of Financial Statement Items...Ch. 1 - Classification of Financial Statement Items Regal...
Ch. 1 - Net Income (or Loss) and Retained Earnings The...Ch. 1 - Statement of Retained Earnings Ace Corporation has...Ch. 1 - Accounting Principles and Assumptions The...Ch. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7PCh. 1 - Statement of Retained Earnings for The Coca-Cola...Ch. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1APCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Fort Worth...Ch. 1 - Corrected Financial Statements Heidis Bakery Inc....Ch. 1 - Statement of Retained Earnings for Brunswick...Ch. 1 - Prob. 1.9APCh. 1 - Prob. 1.10AMCPCh. 1 - Prob. 1.1DCCh. 1 - Reading and Interpreting Chipotles Financial...Ch. 1 - Comparing Two Companies in the Same Industry:...Ch. 1 - Prob. 1.5DCCh. 1 - Prob. 1.6DCCh. 1 - Prob. 1.7DC
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