During 20X1 the following transactions occurred: Sold 1,000 shares of common stock for $25 each on January 1, 20X1 Borrowed $50,000 from the bank at 10% Paid Security Deposit of $7,000 Bought Land for $20,000 Purchased 1,400 Crystals at $100 each Sold 1,100 Crystals for $250 each Paid cash for wages of $55,000 Paid twelve months' rent totalling $30,000 Paid $20,000 for advertising for 20X1 Sold 600 shares of common stock for $25 each on May 30, 20X1 Paid Utility bill for 20X1 of $18,000 Paid interest on Note Payable of $5,000 Paid a $3,000 dividend to shareholders on December 31, 20X1 Also, during the year, the company paid 50% of the 20X1 taxes. The tax rate is 30%. At December 31, 20X1, the company owed $2,000 in wages which had not yet been paid.
During 20X1 the following transactions occurred: Sold 1,000 shares of common stock for $25 each on January 1, 20X1 Borrowed $50,000 from the bank at 10% Paid Security Deposit of $7,000 Bought Land for $20,000 Purchased 1,400 Crystals at $100 each Sold 1,100 Crystals for $250 each Paid cash for wages of $55,000 Paid twelve months' rent totalling $30,000 Paid $20,000 for advertising for 20X1 Sold 600 shares of common stock for $25 each on May 30, 20X1 Paid Utility bill for 20X1 of $18,000 Paid interest on Note Payable of $5,000 Paid a $3,000 dividend to shareholders on December 31, 20X1 Also, during the year, the company paid 50% of the 20X1 taxes. The tax rate is 30%. At December 31, 20X1, the company owed $2,000 in wages which had not yet been paid.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 2E: Effect of transactions on cash flows State the effect (cash receipt or cash payment and amount) of...
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