1. During October, a sari-sari store had the following transactions involving revenue and expenses. Did the firm earn a net income or incur a net loss for the period? What was the amount? • Paid P1,200 for rent Provided services for P2,750 in cash Paid P250 for telephone service • Provided services for P1,900 on credit Paid salaries of P1,675 to employees Paid P350 for office cleaning service

1. During October, a sari-sari store had the following transactions involving revenue and expenses. Did the firm earn a net income or incur a net loss for the period? What was the amount? • Paid P1,200 for rent Provided services for P2,750 in cash Paid P250 for telephone service • Provided services for P1,900 on credit Paid salaries of P1,675 to employees Paid P350 for office cleaning service

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 6E: Horizon Consulting Company had the following transactions during the month of October: a. Record the...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Post the following July transactions to T-accounts for Accounts Receivable, Sales Revenue, and Cash, indicating the ending balance. Assume no beginning balances in these accounts. A. on first day of the month, sold products to customers for cash, $13,660 B. on fifth day of month, sold products to customers on account, $22,100 C. on tenth day of month, collected cash from customer accounts, $18,500
Horizon Consulting Company had the following transactions during the month of October: a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format: b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October? c. What is the October 31 balance of the Pryor Corp. customer account assuming a zero balance on October 1?
If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?
On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700
a. During February, $187,000 was paid to creditors on account, and purchases on account were $203, 400. Assuming the February 28 balance of Accounts Payable was $57, 300, determine the account balance on February 1. fill in the blank 1 of 1$ b. On October 1, the accounts receivable account balance was $ 117,600. During October, $447, 600 was collected from customers on account. Assuming the October 31 balance was $137,240, determine the fees billed to customers on account during October. fill in the blank 1 of 1$ c. On April 1, the cash account balance was $44, 340. During April, cash receipts totaled $253, 100 and the April 30 balance was $52, 350. Determine the cash payments made during April. fill in the blank 1 of 1$
Which of the following joumal entries would be recorded if a business makes a cash payment to a supplier of OR600 "on account (the business had purchased supplies on account in the previous month)? Select one. a Cash 600 Supplies 600 b. Cash Accounts paysbile O 60 C Accounts payable Septey O d. Accounts payatle Cef O
a. During February, $90,040 was paid to creditors on account, and purchases on account were $115,250. Assuming the February 28 balance of Accounts Payable was $38,720, determine the account balance on February 1. $ b. On October 1, the accounts receivable account balance was $50,800. During October, $442,000 was collected from customers on account. Assuming the October 31 balance was $58,400, determine the fees billed to customers on account during October. $ c. On April 1, the cash account balance was $18,070. During April, cash receipts totaled $274,660 and the April 30 balance was $13,010. Determine the cash payments made during April. $
Which of the folowing joumal entries would be recorded if a business makes a cash payment to a supplier of OR600 "on account (the business had purchased supplies on account in the previous month)? Select one: a. Cash 600 Supplies O 600 b. Cash 600 Accounts payable O 600 C. Accounts payable Supptes O 600 d. Accounts payable 600 Cesh O 4 de ENG 205 AM 10/2/2020
"A.During February, $186,500 was paid to creditors on account, and purchases on account were $201,400. Assuming the February 28 balance of Accounts Payable was $59,900, determine the account balance on February 1.B.On October 1, the accounts receivable account balance was $115,800. During October, $449,600 was collected from customers on account. Assuming the October 31 balance was $130,770, determine the fees billed to customers on account during October.C.On April 1, the cash account balance was $46,220. During April, cash receipts totaled $248,600 and the April 30 balance was $56,770. Determine the cash payments made during April."
The following information is taken from the 2022 general ledger of Bonita Company. Rent Salaries Sales Rent expense Prepaid rent, January 1 Prepaid rent, December 31 Salaries and wages expense Salaries and wages payable, January 1 Salaries and wages payable, December 31. Sales revenue Accounts receivable, January 1 Accounts receivable, December 31 Cash payments for rent Cash payments for salaries Cash receipts from customers $ $ $30,300 In each case, compute the amount that should be reported in the operating activities section of the statement of cash flows under the direct method. $ 5,700 8,500 $65,900 3,200 8,300 $160,600 18,400 7,800 33,100 i
16. MC.U3.021 Cave Man Company received cash revenue, $3,500. The accountant would record the following journal entry: a. Cash $3,500 $3,500 $3,500 Accounts Receivable b. Income from Services Cash c. Cash Income from Services d. Cash C. Man, Capital C. Man, Capital b. Income from Services Cash c. Cash Income from Services 17. MC.03.022 Stonehenge Company received cash on account, $2,500. The accountant would record the following journal entry: a. Cash $2,500 d. Cash Accounts Receivable a. Income from Services Cash b. Cash E. Elijah, Capital $3,500 c. E. Elijah, Drawing Cash $3,500 d. Wages Expense Cash $3,500 $2,500 $2,500 18. MC.03.023 E. Elijah, owner, withdrew $3,000 for personal use. The accountant would record the following journal entry: $3,000 $3,000 $2,500 $3,000 $3,500 $3,500 $3,000 $3,000 $2,500 $2,500 $2,500 $2,500 $3,000 $3,000 $3,000