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 M, to determine the net effect of selling and collection activities.

Question

Ignoring the response for part (b), compute the 2026 amortization and the 12/31/26 book value, assuming that at the beginning of 2026, based on new market research, Cheyenne determines that the fair value of the trade name is $14,720. Estimated total future cash flows from the trade name is $15,920 on January 3, 2026. 2026 amortization GA 12/31/26 book value $

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Question

Chapter 21, Problem 21.8BE

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 M, to determine the net effect of selling and collection activities.

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Ignoring the response for part (b), compute the 2026 amortization and the 12/31/26 book value, assuming that at the beginning of 2026, based on new market research, Cheyenne determines that the fair value of the trade name is $14,720. Estimated total future cash flows from the trade name is $15,920 on January 3, 2026. 2026 amortization GA 12/31/26 book value $

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