Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Grier & Associates maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis. The cash basis income statement, along with additional information, follows:
Grier & Associates
Income Statement (Cash Basis)
For the Year Ended December 31, 2025
Cash receipts from customers $425,000
Cash payments:
Salaries and wages $170,000
Income taxes 65,000
Insurance 40,000
Interest…
GRAY Company uses the direct method to prepare its statement of cash flows. GRAY had the following cash
flows during 2021:
Cash receipts from sale of an old van - P 160,000; Cash receipts from issuance of ordinary shares - P 2,000,000;
Cash receipts from the issuance of 10%, 10-yr bonds - P 1,500,000; Cash receipts from customers - P 1,000,000;
Cash receipts from repayment of loan made to another company - P 1,200,000; cash receipts from dividends -
P 150,000; Cash receipts from interest - P 150,000; Cash payments for operating expenses - P 650,000; Cash
payments for taxes - P300,000; Cash payments for equity securities bought classified as FVOCI - P 900,000; Cash
payment for equipment purchased -P 300,000; Cash payments for land required - P 1,200,000. What is the net
cash provided (used) from investing activities?
Five Incorporated maintains its accounting records using the cash basis but presents financial basis using the accrual method. For the year 2021, Five reported cash basis income of 532,000. Other information are as follows:
Accounts Receivable, January 1
300,000
Accounts Receivable, December 31
150,000
Accounts Payable, January 1
400,000
Accounts payable, December 31
320,000
What is the accrual basis net income?
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