1. Journalize the following transactions and omit the explanations.
The corporation had sales of $45,000, of which $35,000 were on account on April 20.
MY ANSWER: SOMEONE PLEASE CHECK
Depreciation Expenses-----10000
Accumulated Depreciation--------10000
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2. The following information was made available from the
Item -----------------------12/31/10--------12/31/09
Accounts Receivable----------$53,400-----------58,600
Accounts Payable--------------35,600-----------32,700
Merchandise Inventory---------85,000-----------79,000
Sales (2010)------------------243,000
Interest Revenue (2010)--------5,600
Dividend Revenue (2010)--------1,200
Tax Expense (2010)------------12,300
Salaries Expense (2010)---------28,000
COGS (2010)-------------------65,000
Interest Expense (2010)---------3,600
Operating Expenses-------------28,500
Complete the cash flow from operating activities section forLauren Company using the direct method for the year ended
December 31, 2010.
MY ANSWER: SOMEONE PLEASE CHECK IF CORRECT
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The corporation had sales of $45,000, of which $35,000 were on account on April 20.
MY ANSWER: SOMEONE PLEASE CHECK
Depreciation Expenses-----10000
Accumulated Depreciation--------10000
----------------------------------------------------------------------------------
2. The following information was made available from the
income statement and balance sheet of Lauren Company.
Item -----------------------12/31/10--------12/31/09
Accounts Receivable----------$53,400-----------58,600
Accounts Payable--------------35,600-----------32,700
Merchandise Inventory---------85,000-----------79,000
Sales (2010)------------------243,000
Interest Revenue (2010)--------5,600
Dividend Revenue (2010)--------1,200
Tax Expense (2010)------------12,300
Salaries Expense (2010)---------28,000
COGS (2010)-------------------65,000
Interest Expense (2010)---------3,600
Operating Expenses-------------28,500
Complete the cash flow from operating activities section forLauren Company using the direct method for the year ended
December 31, 2010.
MY ANSWER: SOMEONE PLEASE CHECK IF CORRECT
Cash Flow Statement | |
Cash flows from (used in) operating activities | |
Cash receipts from customers | 248,200 |
Cash paid to suppliers | -3,000 |
Cash paid to employees | -28,000 |
Cash Paid for Operating Expenses | -28,500 |
Interest paid | -3,600 |
Income taxes paid | -12,300 |
Net cash flows from operating activities | 172,800 |
Cash receipts from customers: | |
Net sales per the income statement | 243000 |
Plus beginning balance in accounts receivable | 58600 |
Minus ending balance in accounts receivable | 53400 |
Equals cash receipts from customers | 248200 |
Cash payments for inventory: | |
Ending inventory | 85000 |
Minus beginning inventory | 79000 |
Plus beginning balance in accounts payable to vendors | 32700 |
Minus ending balance in accounts payable to vendors | 35700 |
Equals cash payments for inventory | 3000 |
Cash paid to employees: | |
Salaries and wages per the income statement | 28000 |
Plus beginning balance in salaries and wages payable | |
Minus ending balance in salaries and wages payable | |
Equals cash paid to employees | 28000 |
Cash paid for operating expenses: | |
Operating expenses per the income statement | 28500 |
Minus depreciation expenses | |
Plus increase or minus decrease in prepaid expenses | |
Plus decrease or minus increase in accrued expenses | |
Equals cash paid for operating expenses | 28500 |
Taxes paid: | |
Tax expense per the income statement | 12300 |
Plus beginning balance in taxes payable | |
Minus ending balance in taxes payable | |
Equals taxes paid | 12300 |
Interest paid: | |
Interest expense per the income statement | 3600 |
Plus beginning balance in interest payable | |
Minus ending balance in interest payable | |
Equals interest paid | 3600 |
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