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iVinArrow [24]
3 years ago
12

Spectacular Corporation began the year with accounts​receivable, inventory, and prepaid expenses totaling $67,000. At the end of

the​ year,
Spectacular had a total of $78,000

for these current assets. At the beginning of the​ year, it owed current liabilities of $44,000,and at​ year-end, current liabilities totaled $43,000. Net income for the year was $82,000. Included in net income was a $3,000 gain on the sale of land and depreciation expense of $10,000.

Show how Spectacular should report cash flows from operating activities for the year. The company uses the indirect method
Business
1 answer:
bixtya [17]3 years ago
6 0

Answer:

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $82,000

Adjustment made:

Add : Depreciation expense $10,000

Less  : Gain on the sale of land ($3,000)

Less: Increase in current assets -$11,000 ($78,000 - $67,000)

Less: Decrease in current liabilities -$1,000 ($43,000 - $44,000)

Total of Adjustments -$5,000

Net Cash flow from Operating activities $77,000

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the journal entry to record the issuance of a note for the purpose of converting an existing account payable would be
Svetllana [295]

Answer: The journal entry a company uses to record the issuance of a note for the purpose of converting an existing account payable would be debit Accounts Payable; credit Notes Payable.

Explanation:

7 0
2 years ago
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected tra
ivanzaharov [21]

Answer:

1. Bird Company (Buyer)

Apr-02 Dr Merchandise Inventory $20,335

Cr Accounts Payable $20,335

Apr-08 Dr Merchandise Inventory $25,000

Cr Accounts Payable $25,000

Apr-08 No entry

Apr-12 Dr Accounts Payable $20,335

Cr Cash $19,937

Cr Merchandise Inventory $ 398

Apr-18 Dr Cash $ 2,000

Cr Merchandise Inventory $ 2,000

Apr-23 Dr Accounts Payable $25,000

Cr Cash $24,750

Cr Merchandise Inventory $ 250

Apr-24 Dr Merchandise Inventory $11,200

Cr Accounts Payable $11,200

Apr-26 Dr Merchandise Inventory $280

Cr Cash $280

2.Swan Company (Seller)

Apr-02 Dr Accounts Receivable $20,335

Cr Sales Revenue $19,900

Cr Cash $435

Dr Cost of Goods Sold $12,500

Dr Merchandise Inventory $12,500

Apr-08 Dr Accounts Receivable $ 25,000

Cr Sales Revenue $ 25,000

Dr Cost of Goods Sold $15,000

Cr Merchandise Inventory $15,000

Apr-08 Dr Delivery Expense $650

Cr Cash $650

Apr-12 Dr Cash $19,937

Dr Sales Discounts $ 398

Cr Accounts Receivable $20,335

Apr-18 Dr Sales Returns and allowances $ 2,000

Cr Cash $ 2,000

Apr-23 Dr Cash $ 24,750

Dr Sales Discounts $ 250

Cr Accounts Receivable $25,000

Apr-24 Dr Accounts Receivable $11,200

Cr Sales Revenue $11,200

Dr Cost of Goods Sold $6,700

Cr Merchandise Inventory $6,700

Apr-26 No entry

Explanation:

1. Preparation of the journal entry for Bird Company (the buyer).

Bird Company (Buyer)

Apr-02 Dr Merchandise Inventory $20,335

Cr Accounts Payable $20,335

($19,900+$435)

Apr-08 Dr Merchandise Inventory $25,000

Cr Accounts Payable $25,000

Apr-08 No entry

Apr-12 Dr Accounts Payable $20,335

($19,900+$435)

Cr Cash $19,937

($20,334-$398)

Cr Merchandise Inventory $ 398

($19,900*2%)

Apr-18 Dr Cash $ 2,000

Cr Merchandise Inventory $ 2,000

Apr-23 Dr Accounts Payable $25,000

Cr Cash $24,750

($25,000-$250)

Cr Merchandise Inventory $ 250

(1%*$25,000)

Apr-24 Dr Merchandise Inventory $11,200

Cr Accounts Payable $11,200

Apr-26 Dr Merchandise Inventory $280

Cr Cash $280

2. Preparation of the journal entry for Bird Company the (Seller).

Swan Company (Seller)

Apr-02 Dr Accounts Receivable $20,335

($19,900+$435)

Cr Sales Revenue $19,900

Cr Cash $435

Dr Cost of Goods Sold $12,500

Dr Merchandise Inventory $12,500

Apr-08 Dr Accounts Receivable $ 25,000

Cr Sales Revenue $ 25,000

Dr Cost of Goods Sold $15,000

Cr Merchandise Inventory $15,000

Apr-08 Dr Delivery Expense $650

Cr Cash $650

Apr-12 Dr Cash $19,937

($20,335-$398)

Dr Sales Discounts $ 398

(2%*$19,900)

Cr Accounts Receivable $20,335

(19,900+435)

Apr-18 Dr Sales Returns and allowances $ 2,000

Cr Cash $ 2,000

Apr-23 Dr Cash $ 24,750

Dr Sales Discounts $ 250

(1%*25,000)

Cr Accounts Receivable $25,000

Apr-24 Dr Accounts Receivable $11,200

Cr Sales Revenue $11,200

Dr Cost of Goods Sold $6,700

Cr Merchandise Inventory $6,700

Apr-26 No entry

4 0
3 years ago
Ldentify whether each statement in the following statement is true or false.
monitta

Answer:

The answer is (a) False (b) False (c) True

Explanation:

Solution

(a)Businesses that do not acquire a differentiation,focus strategy, or  low-cost leadership, is liable to be more successful than businesses that do adopt these strategies - False because Companies or business does not necessarily need to adopt differentiation methods or low cost leadership, they might have their own market strategy to succeed.

(b) Employee abilities to develop innovative products are important for companies that use a low-cost leadership strategy - False .

(c) Companies that use a focus strategy have narrow buyer groups -Focus strategy : This strategy is used when a company knows its segment and has products that can competitively satisfies its needs.In this case it is true.

5 0
3 years ago
The set of all possible sample points (experimental outcomes is called
AysviL [449]
The set of all possible sample points [experimental outcomes] is called the sample space.
4 0
3 years ago
Read 2 more answers
Complete the sentences. Yellowstone National Park is​ ______. A. a natural monopoly good B. a private good C. a common resource
Gekata [30.6K]

Answer:

The correct answers are:

1)  "B": a common resource.

2) "A": excludable and rival.

Explanation:

1) A common resource is one that provides tangible benefits. This is the type of resource that can be used by several people at the same time without excluding the availability for its use to others. If they are not owned by anyone they take the name of open-access resources.

2) A good is excludable and rival if someone can prevent the use of it and when its use necessarily implies others not using it. Under this category fall all private resources since their ownership belongs to a certain number of people only if not only one.

7 0
3 years ago
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