Financial Accounting: Business Process Approach
3rd Edition
ISBN: 9780136115274
Author: Jane L. Reimers
Publisher: Prentice Hall
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Chapter 1, Problem 37EB
To determine
Classify each business transactions as an operating, investing or financing activity.
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During 20X2, LAL Corp. had the following cash flows: (1) received cash of $5,000 billed to a customer in 20X2; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issue; (4) paid dividends of $8,000 to its stockholders; (5) borrowed $50,000 from a local bank; and (6) purchased its own shares of common stock for $10,000.
What is LAL's net cash flows from financing activities for 20X2?
Select one:
a.
$32,000
b.
$16,000
c.
$22,000
d.
$40,000
e.
$42,000
Clear my choice
The cash account balance of FDNACCT came from the following:
From clients for service rendered, P361,000,
From clients for services to be rendered, P23,000
From a bank loan, P102,000, and
From additional investment of the owner, P174,000.
How much is the income of the business?
For each of the following transactions, indicate whether operating (O), investing (I), or financingactivities (F) are affected and whether the effect is a cash inflow ( 1 ) or outflow ( 2 ), or (NE) if thetransaction has no effect on cash.TIP: Think about the journal entry recorded for the transaction. The transaction affects net cash flowsif and only if the account Cash is affected.1. Purchased new equipment with cash.2. Recorded and paid income taxes to the federal government.3. Issued shares of stock for cash.4. Prepaid rent for the following period.5. Paid cash to purchase new equipment.
Chapter 1 Solutions
Financial Accounting: Business Process Approach
Ch. 1 - 1. What is the main purpose of a business? 2....Ch. 1 - Prob. 2YTCh. 1 - 1. What are the two sources of financing for a...Ch. 1 - 1. What are revenues and expenses? 2. What are the...Ch. 1 - 1. What are the two parts of shareholders equity?...Ch. 1 - Prob. 6YTCh. 1 - Prob. 7YTCh. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3Q
Ch. 1 - Prob. 4QCh. 1 - What are the advantages of the corporate form of...Ch. 1 - What are the disadvantages of the corporate form...Ch. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - What are the basic financial statements? Describe...Ch. 1 - What makes the income statement different from the...Ch. 1 - Prob. 11QCh. 1 - What type of activities relate to what the firm is...Ch. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Online Pharmacy Company borrowed 5,000 cash from...Ch. 1 - Prob. 7MCQCh. 1 - During its first year of business, West Company...Ch. 1 - Interest is the cost of a. purchasing inventory....Ch. 1 - Prob. 10MCQCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Identify balance sheet items. (LO 4). Classify the...Ch. 1 - Calculate owners equity. (LO 4). Doughnut Company...Ch. 1 - Prob. 4SEACh. 1 - Prob. 5SEACh. 1 - Calculate owners equity. (LO 4). Pasta Enterprises...Ch. 1 - Super Shop had a retained earnings balance of...Ch. 1 - Prob. 8SEBCh. 1 - Prob. 9SEBCh. 1 - Breck Company shows 80,000 worth of assets on its...Ch. 1 - Prob. 11SEBCh. 1 - For each of the following, calculate the missing...Ch. 1 - Prob. 13SEBCh. 1 - M Company had a retained earnings balance of 4,200...Ch. 1 - Prob. 15EACh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 17EACh. 1 - Prob. 18EACh. 1 - Enter each transaction below into the accounting...Ch. 1 - Prob. 20EACh. 1 - For each of the transactions given, tell whether...Ch. 1 - Prob. 22EACh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 24EACh. 1 - Relationship between income statement and balance...Ch. 1 - Bob started a pool cleaning business on the first...Ch. 1 - Prob. 27EACh. 1 - Retained earnings and cash. (LO 4). Checkmate...Ch. 1 - Prob. 29EACh. 1 - Prob. 30EBCh. 1 - Prob. 31EBCh. 1 - Prob. 32EBCh. 1 - Prob. 33EBCh. 1 - Prob. 34EBCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Prob. 36EBCh. 1 - Prob. 37EBCh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 39EBCh. 1 - Prob. 40EBCh. 1 - Frank Frock started a consulting business on the...Ch. 1 - Prob. 42EBCh. 1 - Prob. 43EBCh. 1 - Prob. 44EBCh. 1 - Prob. 45PACh. 1 - Prob. 46PACh. 1 - Prob. 47PACh. 1 - Analyze business transactions and the effect on...Ch. 1 - Prob. 49PACh. 1 - Analyze business transactions and prepare the...Ch. 1 - Prob. 51PACh. 1 - Prob. 52PBCh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 54PBCh. 1 - Prob. 55PBCh. 1 - Prob. 56PBCh. 1 - Prob. 57PBCh. 1 - Prob. 58PBCh. 1 - Prob. 1FSACh. 1 - Prob. 2FSACh. 1 - Prob. 3FSACh. 1 - What is the Walt Disney Companys key objective? Go...
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- In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. purchased stock in Xerox Corporation B. purchased office supplies C. issued common stock D. sold plant assets for cash E. sold equipment for casharrow_forwardTo 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 $4,750arrow_forwardSantana Ray, ownrt of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. Computer service revenue. 25,007 Net sales 18,393 Total revenue 43 400 Cost of goods sold 14,152 Depreciation expense-office equipment 390 Depreciation expense-Computer equipment 1,230 Wages expense 2,750 Insurance expense 515 Rent expense 2,175 Computer supplies expense 1,305 Advertising expense 570 Mileage expense 260 Repairs expense-Computer 930 Total expenses 24,277 Net Income 19,123arrow_forward
- . Complete the following table regarding cash flows. Transaction number Transaction CFO, CFI, CFF ? Cash inflow or cash outflow ? 1. Sold stock to the public 2. Borrow money from a local bank 3. Purchased equipment for cash 4. Provided a service for cash 5. Paid salaries to employeesarrow_forwardDevan had the following transactions relating to his business. £ Cash received from debtors 18,500 Due from debtors 1/1/2004 1,000 Opening stock 2,000 Closing stock 500 Due to suppliers 1/1/2004 750 Due to suppliers 31/12/2004 300 Cash paid to suppliers 1,200 Calculate Gross profit: A £15,250 B £16,250 C £750 D £18,250arrow_forward
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