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alexandr1967 [171]
3 years ago
9

On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flo

ws:
ACCOUNT Land ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
Jan. 1 Balance 885,000
Mar. 12 Purchased for cash 274,000 1,159,000
Oct. 4 Sold fo $151,000 129,000 1,030,000
Item Section of Statement of Cash Flows Added or Deducted Amount
Mar. 12: Purchase of fixed asset $
Oct. 4: Sale of fixed asset $
Gain on sale of fixed asset (assume the indirect method) $
Statement of Cash Flow:
The statement of cash flow includes the operating, investing, and financing activities sections. The statement combines the changes to the last two balance sheets and the most current income statement to reconcile changes in cash balances between two periods.
Business
1 answer:
iragen [17]3 years ago
8 0

Answer:

Flows Added

Oct. 4: Proceeds from Sale of fixed asset $151,000

Oct. 4: Gain on sale of fixed asset <em> </em>$22,000

Flows Deducted

Mar. 12: Purchase of fixed asset $274,000

Explanation:

The Cash flow statement is prepared under the following headings :

  1. Cash flow from operating activities
  2. Cash flow from investing activities
  3. Cash flow from financing activities

Therefore form the transactions we need to establish what amount fall in which category.

Here is an extract of the Cash flow statement based on the given data

Cash flow from Operating Activities

<em>Adjustment to non-cash items </em>

Gain on sale of asset<em> </em>($151,000 - $129,000) <em>    </em>$22,000

Cash flow from Investing Activities

Purchase of Asset                                             ($274,000)

Proceeds from sale of Asset                              $151,000

Cash flow from Financing Activities

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master budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range.

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A master budget is a budget that contains an aggregation of smaller level budgets into an overall single budget

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7 0
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Assume the company is considering investing in a new machine that will increase its fixed costs by $42,500 per year and decrease
Semenov [28]

Answer:

The company should purchase the machine.

Explanation:

Note: The complete question is attached below

Forecasted contribution margin income statement

For the Year Ended December 31

Particulars                                       Amount$

Sales                                                2,440,000

Variable cost(10,000*185(195-10))  <u>1,850,000</u>

Contribution margin                        590,000

Fixed cost (327,600+42,500)         <u>370,100</u>

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Because the income increase by $57,500 due to the pruchase, the company should purchase the machine

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2 years ago
Off-the-shelf accounting software is not adequate to meet the needs of small businesses. True or False True False
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True

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Off-the-shelf accounting software may not be consistent with these circumstances rendering it cumbersome or unsuitable.

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3 years ago
On January 1, 2021, Splash City issues $460,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and
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Answer:

The journal entry is shown below:

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Journal Entry.

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Dec.31  Interest Expense A/c Dr    $18,400

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Rumba Dance Hall is considering offering a wedding reception package that includes the ballroom rental, decorations, a wedding c
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ballroom rent                              $4,500

<u>extras                                             $800</u>

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net income increase =                     $700

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