Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit , all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses. To Journalize: The given transaction of Company SBP, to determine the net effect of salaries expense incurred and paid in the accounting year.

Question

Want to see the full answer?

Answer 1

Question

Chapter 21, Problem 21.4BE

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To Journalize: The given transaction of Company SBP, to determine the net effect of salaries expense incurred and paid in the accounting year.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

45. What is the amount of cash disbursements per book in September? CHOICES: P9,825,000 P10,275,000 P10,950,000 P10,050,000

P20.5 (LO4) (Computation of Pension Expense, Journal Entries for 3 Years) Hiatt Toothpaste SA initiates a defined benefit pension plan for its 50 employees on January 1, 2019. The insurance company which administers the pension plan provided the following selected information for the years 2019, 2020, and 2021. For Year Ended December 31, 2019 2020 2021 Plan assets (fair value) €50,000 € 85,000 €180,000 Vested benefit obligation 45,000 165,000 292,000 Defined benefit obligation 60,000 200,000 324,000 Net (gain) loss –0– 78,900 5,800 Employer's funding contribution (made at end of year) 50,000 60,000 105,000 There were no balances as of January 1, 2019, when the plan was initiated. The actual return on plan assets was 10% over the 3-year period, but the discount (interest) rate was 13% in 2019, 11% in 2020, and 8% in 2021. The service cost component of net periodic pension expense amounted to the following: 2019, €60,000; 2020, €85,000; and 2021, €119,000. No…

*P7.13 (Bank Reconciliation and Adjusting Entries) The cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2020. The bank statement as of that date showed a balance of $4,150. Upon comparing the statement with the cash records, the following facts were determined. 1. There were bank service charges for June of $25. 2. A bank memo stated that Bao Dai’s note for $1,200 and interest of $36 had been collected on June 29, and the bank had made a charge of $5.50 on the collection. (No entry had been made on Aguilar’s books when Bao Dai’s note was sent to the bank for collection.) 3. Receipts for June 30 for $3,390 were not deposited until July 2. 4. Checks outstanding on June 30 totaled $2,136.05. 5. The bank had charged the Aguilar Co.’s account for a customer’s uncollectible check amounting to $253.20 on June 29. 6. A customer’s check for $90 (as payment on the customer’s Accounts Receivable) had been entered as $60 in the cash receipts…