INTERMEDIATE ACCOUNTING-MYACCOUNTINGLAB
3rd Edition
ISBN: 9780136946533
Author: GORDON
Publisher: PEARSON
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Chapter 2, Problem 2.8E
Cash vs. Accrual. you are provided the following information for the Del Campo Consulting Associates.
| 2019 | 2018 | |
| Service revenue (accrual basis) | $250,000 | $185,000 |
| Cash collected from clients | 80,000 | 97,000 |
| Operating expenses: | ||
| Salary expense (accrual basis) | 12,000 | 16,500 |
| Purchased supplies for cash | 4,000 | 2,500 |
| Purchased supplies on account | 1,500 | 1,000 |
| 2,000 | 2,000 | |
| Rent paid in cash | 7,000 | 3,000 |
| Prepaid insurance | 5,500 | -0- |
Required:
Assume that all supplies purchased were used in operations in the year of purchase Rental payments pertain to rental space used in the year of payment.
- a. Prepare an income statement tor Del Campo tor 2019 and 2018 under both the cash and the accrual basis of accounting.
- b. Compute operating cash flow for both years under cash and accrual bases.
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P 400,000
P 100,000
P 500,000
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In 2021, Hope Company incurred sales on account of $105,000. The company also has the following information:
December 31, 2021
December 31, 2020
Accounts Receivable
$21,500
$53,000
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$47,000
What is the amount of cash received from customers for Hope Company in 2021?
Multiple Choice
$114,400
$136,500
$105,000
$88,500
Preparation of SCF for a Single Proprietorship
Instructions:
Prepare a Statement of Cash Flows for the year ended December 31,2020 the using the following account titles listed.
Use the Direct Method.
You may use any desired business name.
Use the space provided for your answer.
Cash from Clients – 450,000
Cash Payment for merchandise – 410,500
Cash receipt from additional investment of owner – 114,450
Cash receipt from sale of equipment - 15,000
Cash withdrawal by the owner – 80,000
Cash, January 1, 2020 - 120,000
Credit sales – 35,000
Depreciation expense – 15,410
Paid loan from a bank - 111,000
Payment to interest expense – 10,000
Payment to suppliers – 20,000
Payment to utilities – 30,000
Payments to Employees – 14,800
Chapter 2 Solutions
INTERMEDIATE ACCOUNTING-MYACCOUNTINGLAB
Ch. 2 - Prob. 2.1QCh. 2 - Why is a conceptual framework of accounting...Ch. 2 - Prob. 2.3QCh. 2 - Prob. 2.4QCh. 2 - Prob. 2.5QCh. 2 - Prob. 2.6QCh. 2 - What is predictive value?Ch. 2 - Prob. 2.8QCh. 2 - When is financial information considered...Ch. 2 - Prob. 2.10Q
Ch. 2 - Prob. 2.11QCh. 2 - Prob. 2.12QCh. 2 - What is the recognition principle and when is an...Ch. 2 - What is the revenue recognition principle and when...Ch. 2 - Prob. 2.15QCh. 2 - When are expenses recognized under IFRS?Ch. 2 - How are transactions recorded under accrual...Ch. 2 - Prob. 2.18QCh. 2 - Prob. 2.19QCh. 2 - Prob. 2.20QCh. 2 - Prob. 2.21QCh. 2 - Prob. 2.22QCh. 2 - Prob. 2.23QCh. 2 - Prob. 2.1BECh. 2 - Prob. 2.2BECh. 2 - Objective of Financial Reporting. Explain the...Ch. 2 - Prob. 2.4BECh. 2 - Fundamental and Enhancing Characteristics....Ch. 2 - Prob. 2.6BECh. 2 - Prob. 2.7BECh. 2 - Prob. 2.8BECh. 2 - Fundamental and Enhancing Characteristics....Ch. 2 - Faithful Representation. Match the component of a...Ch. 2 - Prob. 2.11BECh. 2 - Prob. 2.12BECh. 2 - Expense Recognition. Discuss the three main...Ch. 2 - Element Definitions. Identify whether the...Ch. 2 - Prob. 2.15BECh. 2 - Element Definitions, U.S. GAAP, IFRS. Identify...Ch. 2 - Prob. 2.17BECh. 2 - Measurement Bases. Match the measurement basis...Ch. 2 - Cash versus Accrual Bases of Accounting. The...Ch. 2 - Prob. 2.20BECh. 2 - Prob. 2.21BECh. 2 - Assumptions in Financial Reporting. Indicate the...Ch. 2 - Conceptual Framework. Noeleen Auto Mall, Ltd....Ch. 2 - Qualitative Characteristics. Referring to the...Ch. 2 - Prob. 2.3ECh. 2 - Prob. 2.4ECh. 2 - Terms and Concepts. Complete the following...Ch. 2 - Prob. 2.6ECh. 2 - Cash versus Accrual Bases of Accounting. Top Notch...Ch. 2 - Cash vs. Accrual. you are provided the following...
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