Loose Leaf for Financial Accounting: Information for Decisions
Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 1, Problem 7PSB
Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.   

To determine: asset liability and equity table.

Expert Solution
Check Mark

Answer to Problem 7PSB

The year ended balance of cash account for $130,060, account receivable account for $675 equipment accounts for $2400 account payable account for 0 common stock account for $1300000 dividend account for $4000 revenue account for $16925 and the expenses account for $9790

Explanation of Solution

    AssetsLiabilitiesEquity
    Date(June)CashAccount Receivable Office EquipmentAccount PayableCommon StockDividends RevenueExpenses
    1130,000130,000
    2-6,0006,000
    424002400
    611501,150
    8850850
    1475007,500
    16800800
    207,500-7500
    2179007,900
    24675675
    257,900-7900
    26-2400-2400
    28-800850
    29-40004000
    30-150150
    30-890890
    Balance130,0606752,4000130,0004,00016,9259,790
Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.   

To prepare: Income statement and statement of retain earning.

Expert Solution
Check Mark

Answer to Problem 7PSB

Net income account for $7,135, retain earning account for $3,535 and assets and liabilities account for $133,135.

Explanation of Solution

Income statement for the month of May

    N companyIncome statement for the month ended May 31
    Particular Amount $Amount $
    Revenues16925
    Less: Expenses For Rent6000
    Expenses for salaries1600
    Expenses for telephone150
    Expenses for utilities890
    Expenses for advertisement 1150
    Net income $7,135

Statement of retain earning

    N companyIncome statement for the month ended May 31
    Particular Amount $Amount $
    Retained earnings as on 1 June0
    Add: Net income7135
    Less: Dividend 4000
    Retained earnings as a June 30$3,135

Balance sheet

    N companyBalance sheetFor the month ended may 31
    AssetsLiability
    ParticularAmountParticularAmount
    Cash130060Accounts payable0
    Office equipment2400Common stock130000
    Received account675Retained earning 3135
    Total assets133135Total Liability133,135
Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.   

To construct: Cash flow statement for N company.

Expert Solution
Check Mark

Answer to Problem 7PSB

Balance of cash as on June 31st 130060

Explanation of Solution

Company’s cash flow statement

    N companyCash flow statement for June
    Particular
    Flow of cash from activities 16250
    Receipt of cash from customer6000
    Payment if rent in cash1150
    Payment made for cleaning 150
    Payment made for telephone expense890
    Payment made for utilities 1600
    Net utilization of cash by activities operating 6460
    Flow of cash activities
    Flow of cash from activities (investing)
    Purchase of equipment 2400
    Net utilization of cash by activities (investing)2400
    Flow of cash from activities (financing )
    Investment made by the owner 130000
    Dividend paid in cash4000
    Net cash by activities126000
    Net increment underlying 130060
    Balance of cash as on June 10
    Balance of cash as on June 31st130060

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Chapter 1 Solutions

Loose Leaf for Financial Accounting: Information for Decisions

Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - What does the concept of objectivity imply for...Ch. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - What do accountants mean by the term revenue?Ch. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Define return and risk. Discuss the trade-off...Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Choose from the following term or phrase a through...Ch. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Identify each of the following terms or phrases as...Ch. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Use Google's December 31. 2016, financial...Ch. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Match each of the numbered descriptions I through...Ch. 1 - Prob. 5ECh. 1 - Enter the letter A through H for the principle or...Ch. 1 - Determine the missing amount from each of the...Ch. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Use the information in Exercise 1-15 to prepare an...Ch. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 23ECh. 1 - Identify how each of the following separate...Ch. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 6PSACh. 1 - Gabi Gram started The Gram Co., a new business...Ch. 1 - Prob. 8PSACh. 1 - Sanyu Sony started a new business and completed...Ch. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 12PSACh. 1 - Prob. 13PSACh. 1 - Prob. 14PSACh. 1 - Prob. 1PSBCh. 1 - Prob. 2PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 1 - On October 1, 2018, Santana Rey launched a...Ch. 1 - Prob. 1FSACh. 1 - comparative figures ($ millions) for both Apple...Ch. 1 - Prob. 3FSACh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTN
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