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Rina8888 [55]
2 years ago
12

A business pays biweekly salaries of $20,000 every other Friday for a 10-day period ending on that day. The last payday of Decem

ber is Friday, December 27. Assume the next pay period begins on Monday, December 30, and the proper adjusting entry is journalized at the end of the fiscal period (December 31). The entry for the payment of the payroll on Friday, January 10, includes a:
Business
1 answer:
zhuklara [117]2 years ago
3 0

Answer:

Entries for December 31:

20000 x 2/10 : $4000

Dr salary expense : $4000

Cr salary payable : $4000

Entries for January 10:

Dr salary expense : $16000

Dr salary payable :$ 4000

Cr cash : $20000

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Answer:

b. investing activities

Explanation:

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under investing activities.

Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.

<em>Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.</em>

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