Paid cash operating expenses

Assignment Help Cost Accounting
Reference no: EM13918882

Effect of accounting events on the income statement and statement of cash flows

811_264-B-A-A-C (2423).png

Required: 

Explain how each of the following events or series of events and any related adjusting entry will affect the amount of net income and the amount of cash flow from operating activities reported on the year end financial statements. Identify the direction of change (increase, decrease, or NA) and the amount of the change. Organize your answers according to the following table. The first event is recorded as an example. If an event does not have a related adjusting entry, record only the effects of the event.

a. Paid $9,000 cash on October 1 to purchase a one year insurance policy. 
b. Purchased $2,000 of supplies on account. Paid $500 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $300. 
c. Provided services for $10,000 cash. 
d. Collected $2,400 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. 
e. Accrued salaries amounting to $5,600. 
f. Sold land that cost $3,000 for $3,000 cash. 
g. Acquired $15,000 cash from the issue of common stock. 
h. Earned $12,000 of revenue on account. Collected $8,000 cash from accounts receivable. 
i. Paid cash operating expenses of$4,500. 

Reference no: EM13918882

Questions Cloud

Interest payable at maturity : Calculate the interest payable at maturity.
Is minimizing the var the same as minimizing the variances : Is minimizing the VaR the same as minimizing the variances of the portfolio? Answer Yes or No, and justify. For a fixed return, is minimizing the VaR the same as minimizing the variances of the portfolio
Addition, subtraction, multiplication, division and modulus : Programming assignment (100 pts): Write a computer program in C which will simulate a calculator. Your calculator needs to support the five basic operations (addition, subtraction, multiplication, division and modulus) plus primality testing (natu..
Riordan manufacturing virtual organization : You are an employee of Riordan Manufacturing, which has just gone through a company reorganization. You have been reassigned to a different position and are now the information technology (IT) assistant project director. Your supervisor has inform..
Paid cash operating expenses : Explain how each of the following events or series of events and any related adjusting entry will affect the amount of net income and the amount of cash flow from operating activities reported on the year end financial statements.
Increase in the market risk premium : The returns on the three stocks are independent of one another (i.e., the correlation coefficients all equal zero). Assume that there is an increase in the market risk premium, but the risk-free rate remains unchanged. Which of the following state..
Amount would be shown as ending inventory under : If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under (1) FIFO, (2) LIFO and (3) Average-cost? (Avg Cost is 5.8726)
What is the incremental cost associated with producing : Mama Italian Sauce Production Cost Budget April 2008 Production - Jars of sauce 20,000 Ingredient cost (variable) $16,000 Labor cost (variable) 9,000 Rent (fixed) 4,000 Depreciation (fixed) 6,000 Other (fixed) 1,000 Total $36,000 The company is curre..
Construct the groups base case projected : Construct the groups base case projected P & L statement-What is the group's contribution margin? What is its breakeven point-What volume is required to provide a pretax profit of $100,000

Reviews

Write a Review

 

Cost Accounting Questions & Answers

  What is the prime cost per unit and conversion cost per unit

Of the unit manufacturing cost calculated in Requirement 2, $3.20 is direct materials and $9.80 is overhead. What is the prime cost per unit? Conversion cost per unit?

  Distinction between adjusting and non-adjusting events

Explain the distinction between adjusting and non-adjusting events and discuss the requirements under the standard for the disclosure of events after the reporting period

  Compute the variable and fixed cost elements

Compute the variable and fixed cost elements using the high-low method, estimate the total cost if the company produces 8,500 units.

  Show effect of each transaction on the accounting equation

Show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the right-hand margin.

  What is the cost of goods sold during the year

Selected data concerning the past fiscal year's operations (000 omitted) of the Televans Manufacturing Company are presented below.

  Founders state bank developed a standard

Founders State Bank developed a standard for teller staffing that provided for one teller to handle 12 customers per hour. During June, the bank averaged 50 customers per hour and had five tellers on duty at all times.

  What unit cost is relevant for a minimum selling price

The company has 500 units of this product left over from last year that are vastly inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost is relevant for establishing a minimum selling pric..

  Creating a formal statement

ZBB forces an organization to prioritize its projects and look for alternative ways to fund or do projects. ZBB also forces organizations to plan over several years because of the time and cost required.

  Discuss how a hospital records the value of goods taken

Discuss how a hospital records the value of goods taken on consignment.  For example, art work available for sale in the hospital's gift shop.

  Calculate the cost of goods sold for the period

Calculate the cost of goods sold for the period

  Prepare a trial balance as at 28 february 2013

Prepare an adjusted trial balance as at 28 February 2013 and all journals should be prepared using Microsoft Excel, or similar spreadsheet software.

  Determine amounts to be reported for cost of goods

Determine the amounts to be reported for cost of goods sold and gross profit.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd