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Sunday, 15 December 2013

Exercise 12-9 Cash flows from financing activities L.O. P3 a. Net income was $470,000. b. Issued common stock for $74,000 cash. c. Paid cash dividend of $15,000. d. Paid $125,000 cash to settle a note payable at its $125,000 maturity value. e. Paid $124,000 cash to acquire its treasury stock. f. Purchased equipment for $93,000 cash. Use the above information to determine this company's cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)

Exercise 12-9 Cash flows from financing activities L.O. P3

a.	Net income was $470,000.
b.	Issued common stock for $74,000 cash.
c.	Paid cash dividend of $15,000.
d.	Paid $125,000 cash to settle a note payable at its $125,000 maturity value.
e.	Paid $124,000 cash to acquire its treasury stock.
f.	Purchased equipment for $93,000 cash.

Use the above information to determine this company's cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)

Exercise 12-8 Cash flows from investing activities L.O. P3 a. Sold land costing $330,000 for $430,000 cash, yielding a gain of $15,000. b. Paid $100,000 cash for a new truck. c. Equipment with a book value of $81,000 and an original cost of $161,000 was sold at a loss of $31,000. d. Long-term investments in stock were sold for $93,500 cash, yielding a gain of $15,500. Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)

Exercise 12-8 Cash flows from investing activities L.O. P3

a.	Sold land costing $330,000 for $430,000 cash, yielding a gain of $15,000.
b.	Paid $100,000 cash for a new truck.
c.	Equipment with a book value of $81,000 and an original cost of $161,000 was sold at a loss of $31,000.
d.	Long-term investments in stock were sold for $93,500 cash, yielding a gain of $15,500.

Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)

Roney Company’s calendar-year 2011 income statement shows the following: Net Income, $408,000; Depreciation Expense, $50,592; Amortization Expense, $10,200; Gain on Sale of Plant Assets, $4,500. An examination of the company’s current assets and current liabilities reveals the following changes (all from operating activities): Accounts Receivable decrease, $15,500; Merchandise Inventory decrease, $44,950; Prepaid Expenses increase, $2,100; Accounts Payable decrease, $5,250; Other Payables increase, $798. Use the indirect method to compute cash flow from operating activities. (Amounts to be deducted should be indicated with a minus sign.)

Roney Company’s calendar-year 2011 income statement shows the following: Net Income, $408,000; Depreciation Expense, $50,592; Amortization Expense, $10,200; Gain on Sale of Plant Assets, $4,500. An examination of the company’s current assets and current liabilities reveals the following changes (all from operating activities): Accounts Receivable decrease, $15,500; Merchandise Inventory decrease, $44,950; Prepaid Expenses increase, $2,100; Accounts Payable decrease, $5,250; Other Payables increase, $798.

Use the indirect method to compute cash flow from operating activities. (Amounts to be deducted should be indicated with a minus sign.)

Thursday, 12 December 2013

The following equation shows the transactions of West Cleaning Service during May. The business is owned by Carol West.

Assets

Liab.

Owner's Equity

Cash

Accts.
Rec.

Supp.

Equip.

Accts.
Pay.

C. West,
Capital

Rev.

−

Exp.

Balances, May 1

14,000

2,000

4,800

32,800

6,000

47,600

−

Paid for utilities

− 880

+ 880

New balances

13,120

2,000

4,800

32,800

6,000

47,600

−

880

Sold services for cash

+ 4,880

New balances

18,000

2,000

4,800

32,800

6,000

47,600

4,880

−

880

Paid a creditor

− 1,600

New balances

16,400

2,000

4,800

32,800

4,400

47,600

4,880

−

880

Sold services on credit

+ 2,400

New balances

16,400

4,400

4,800

32,800

4,400

47,600

7,280

−

880

Paid salaries

− 8,400

+ 8,400

New balances

8,000

4,400

4,800

32,800

4,400

47,600

7,280

−

9,280

Paid telephone bill

− 304

+ 304

New balances

7,696

4,400

4,800

32,800

4,400

47,600

7,280

−

9,584

Withdrew cash for personal expenses

− 2,000

New balances

5,696

4,400

4,800

32,800

4,400

45,600

7,280

−

9,584

Prepare an income statement for the month of May 31, 2013. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the "$" sign in your response.)

WEST CLEANING SERVICE Income Statement Month Ended May 31, 2013
Revenue
Fees income		$
Expenses
Utilities expense	$
Salaries expense
Telephone expense

Total Expenses

Net loss		$

Prepare a statement of owner's equity for the month of May 31, 2013. (Input all amounts as positive values except losses and decreases which should be indicated with a minus sign. Omit the "$" sign in your response.)

WEST CLEANING SERVICE Statement of Owner's Equity Month Ended May 31, 2013
Carol West, Capital, May 1, 2013		$
Net loss for May	$
Less: Withdrawal for May

Decrease in capital

Carol West, Capital, May 31, 2013		$

Prepare a balance sheet for May 31, 2013. (Be sure to list the accounts in order of their liquidity. Omit the "$" sign in your response.)

WEST CLEANING SERVICE Balance Sheet May 31, 2013
Assets
Cash	$
Accounts receivable
Supplies
Equipment

Total Assets	$

Liabilities
Accounts payable	$
Owner's Equity
Carol West, Capital

Total Liabilities and Owner's Equity	$

Analyze:

Which amount was transferred from the statement of owner's equity? (Omit the "$" sign in your response.)

Owner's equity