Financial Accounting: Information for Decisions
8th Edition
ISBN: 9781259533006
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 2, Problem 3PSA
1.
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
To prepare: The general
1.
Expert Solution
Answer to Problem 3PSA
The total for journal entries is $216420
Explanation of Solution
| Date (March) | Particular | PR | Dr. | Cr. |
| 1stMarch | Cash | 101 | 150,000 | |
| Office Equipment | 163 | 22,000 | ||
| To Common stock | 307 | 172000 | ||
| (Owner’s investment) | ||||
| 2ndMarch | Prepaid rent | 131 | 6000 | |
| To Cash | 101 | 6000 | ||
| (Paid in advance for rent) | ||||
| 3rdMarch | Office equipment | 163 | 3000 | |
| Office supplies | 124 | 1200 | ||
| To account payable | 201 | 4200 | ||
| (Purchased office equipment and office supplies) | ||||
| 6thMarch | Cash | 101 | 4000 | |
| To Service revenue | 403 | 4000 | ||
| (Received cash for provided service) | ||||
| 9thMarch | 106 | 7500 | ||
| To service revenue | 403 | 7500 | ||
| (Provide service on credit) | ||||
| 12thMarch | Account payable | 201 | 4200 | |
| Cash | 101 | 4200 | ||
| (Paid cash that was due) | ||||
| 19thMarch | Prepaid Insurance | 128 | 5000 | |
| To cash | 101 | 5000 | ||
| (Paid cash as premium for insurance) | ||||
| 22thMarch | Cash | 101 | 3500 | |
| Account receivable | 106 | 3500 | ||
| (Received cash) | ||||
| 25thMarch | Account receivable | 106 | 3820 | |
| Service revenue | 403 | 3820 | ||
| 29thMarch | Dividends | 319 | 5100 | |
| Cash | 101 | 5100 | ||
| (to record the payment of cash as a dividend) | ||||
| 30thMarch | Office supplies | 163 | 600 | |
| To Accounts payable | 201 | 600 | ||
| (Purchase office supplies on credit) | ||||
| 31thMarch | Utilities expense | 690 | 500 | |
| To Cash | 101 | 500 | ||
| (Paid cash for utilities) | ||||
| Total | 216420 | 216420 |
2.
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: Ledger for the following transactions.
2.
Expert Solution
Answer to Problem 3PSA
Balance of cash ledger is $136700, account receivable $7820, dividend $5300, office supplies $1800, prepaid insurance is $5000, prepaid rent $6000, office equipment $25000, Account payable $600, Common stock $172000, service revenue $15320, and utilities is $500
Explanation of Solution
| Cash Account No.101 | ||||
| Date | PR | Debit | Credit | Balance |
| 1stMarch | G1 | 150000 | 150000 | |
| 2ndMarch | G1 | 6000 | ||
| 6thMarch | G1 | 4000 | ||
| 12thMarch | G1 | 4200 | ||
| 19thMarch | G1 | 5000 | ||
| 22ndMarch | G1 | 3500 | ||
| 28thMarch | G1 | 5100 | ||
| 30thMarch | G1 | 500 | 136700 | |
| Account receivable | Account no.106 | |||
| Date | PR | Debit | Credit | Balance |
| 9thMarch | G1 | 7500 | 7500 | |
| 22ndMarch | G1 | 3500 | 4000 | |
| 25thMarch | G1 | 3820 | 7820 |
| Prepaid insurance | Account no. 128 | |||
| Date | PR | Debit | Credit | Balance |
| 19thMarch | G1 | 500 | 5000 | |
| Office equipment | Account no. 163 | |||
| Date | PR | Debit | Credit | Balance |
| 1stMarch | G1 | 22000 | 22000 | |
| 3thMarch | G1 | 3000 | 25000 | |
| Office supplies | Account no. 124 | |||
| Date | PR | Debit | Credit | Balance |
| 3rdMarch | G1 | 1200 | 1200 | |
| 30thMarch | G1 | 600 | 1800 |
| Prepaid rent | Account no. 131 | |||
| Date | PR | Debit | Credit | Balance |
| 2ndMarch | G1 | 600 | 6000 | |
| Account payable | Account no. 201 | |||
| Date | PR | Debit | Credit | Balance |
| 3thMarch | G1 | 4200 | 4200 | |
| 12thMarch | G1 | 4200 | 0 | |
| 30thMarch | G1 | 600 | 600 |
| Common stock | Account no. 307 | |||
| Date | PR | Debit | Credit | Balance |
| 1stMarch | G1 | 172000 | 172000 | |
| Dividend | Account no. 319 | |||
| Date | PR | Debit | Credit | Balance |
| 29thMarch | G1 | 5100 | 5100 | |
| Service Revenue | Account no. 403 | |||
| Date | PR | Debit | Credit | Balance |
| 6thMarch | G1 | 4000 | 4000 | |
| 9thMarch | G1 | 7500 | 11500 | |
| 25thMarch | G1 | 3820 | 15320 | |
| Utilities | Account no. 690 | |||
| Date | PR | Debit | Credit | Balance |
| 30thMarch | G1 | 500 | 500 |
3.
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: Trail balance.
3.
Expert Solution
Answer to Problem 3PSA
Total of trail balance is $187920
Explanation of Solution
| HTrail balance30thMarch. | ||
| Particular | Dr. | Cr. |
| Cash | 136700 | |
| Account receivable | 7820 | |
| Office supplies | 1800 | |
| Prepaid insurance | 5000 | |
| Prepaid rent | 6000 | |
| Office equipment | 25000 | |
| Account payable | 600 | |
| Common Stock | 172000 | |
| Dividend | 5,100 | |
| Service revenue | 15320 | |
| Utilities | 500 | |
| Total | 187920 | 187920 |
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Chapter 2 Solutions
Financial Accounting: Information for Decisions
Ch. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Should a transaction be recorded first in a...Ch. 2 - Prob. 7DQCh. 2 - Why does the recordkeeper prepare a trial balance?Ch. 2 - Prob. 9DQCh. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Review the Apple balance sheet in Appendix A....Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Identify the items from the following list that...Ch. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 11QSCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 9ECh. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - A corporation had the following assets and...Ch. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 21ECh. 2 - Prob. 22ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Nuncio Consulting complete the following...Ch. 2 - Prob. 5PSBCh. 2 - Prob. 2SPCh. 2 - Prob. 1BTNCh. 2 - Key comparative figures for Apple and Google...Ch. 2 - Assume that you are a cashier and your manager...Ch. 2 - Prob. 4BTNCh. 2 - Prob. 6BTNCh. 2 - Prob. 7BTNCh. 2 - Prob. 8BTNCh. 2 - Samsung (www.Samsung.com) is a market leader in...
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