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katrin [286]
3 years ago
14

On December 31, 2019, the Income Statement section of the worksheet for Capeletti Distributors contained the following informati

on.
Income Statement Section Debit Credit
Income Summary $37,600 $40,900
Sales 249,500
Sales Returns and Allowances 3,400
Sales Discounts 2,400
Interest Income 120
Purchases 133,400
Freight In 1,700
Purchases Returns and Allowances 1,500
Purchases Discounts 1,430
Rent Expense 8,000
Utilities Expense 2,830
Telephone Expense 1,440
Salaries Expense 65,100
Payroll Taxes Expense 5,170
Supplies Expense 1,600
Depreciation Expense 2,000
Interest Expense 240
Totals $264,880 $293,450

Assume further that the owner of the firm is John Capeletti and that the John Capeletti, Drawing account had a balance of $25,700 on December 31, 2019.
Required:
Prepare the entries that should be made in the general journal to close the revenue, cost of goods sold, expense, and other temporary accounts.
Business
1 answer:
Yuliya22 [10]3 years ago
7 0

Explanation:

The closing journal entries are as follows

1. Sales $249,500

  Interest Income $120

  Purchases Returns and Allowances $1,500

  Purchases Discounts $1,430

                   To Income Summary $252,550

(Being revenue account closed)

2. Income summary A/c Dr $227,280

               To Sales Returns and Allowances $3,400

               To Sales Discounts $2,400

               To Purchases $133,400

               To Freight In $1,700

               To Rent Expense $8,000

               To Utilities Expense $2,830

               To Telephone Expense $1,440

               To Salaries Expense $65,100

               To Payroll Taxes Expense $5,170

               To Supplies Expense $1,600

               To Depreciation Expense $2,000

               To Interest Expense $240

(Being expenses accounts are closed)

3. Income summary A/c Dr $28,570

                 To John Capeletti, Capital $28,570

(Being the net income is closed)

The calculation is shown below:

= $40,900 + $252,550 - $227,280 - $37,600

= $28,570

4. John Capeletti, Capital $25,700

                 To John Capeletti, Drawings $25,700

(Being drawing account is closed)

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frez [133]

Answer:

The firm’s 2019 operating cash flow is $610,500

Explanation:

Cash Flow to Creditors

Cash Flow to Creditors = Interest Expenses Paid - Net Increase in Long term debt

= Interest Expenses Paid - [Long term debt at the end - Long term Debt at the Beginning]

= $95,500 - [$1,610,000 - $1,415,000]

= $95,500 - $195,000

= -$99,500

Cash Flow to Stockholders

Cash Flow to Stockholders = Dividend Paid – Net New Equity

= Dividend Paid – [(Common stock at the end + Additional paid-in surplus account at the end) - (Common stock at the beginning + Additional paid-in surplus account at the beginning)

= $148,000 - [($143,000 + $2,980,000) - ($143,000 + $2,680,000)]

= $148,000 - [$3,123,000- $2,823,000]

= $148,000 - $300,000

= -$152,000

Cash Flow from assets

Cash Flow from assets = Cash Flow to Creditors + Cash Flow to Stockholders

= -$99,500 - $152,000

= -$251,500

Operating Cash Flow

Cash flow from assets = Operating Cash flows - Change in Net Working capital - Net Capital Spending

-$251,500 = Operating cash flow - (-$128,000) - $990,000

-$251,500 = Operating cash flow + $128,000 - $990,000

Operating cash flow = $990,000 - $128,000 - $251,500

Operating cash flow = $610,500

Therefore, the firm’s 2019 operating cash flow is $610,500

6 0
2 years ago
Montgomery Industries spent $700,000 in 2017 on a construction project to build a library. Montgomery also capitalized $35,000 o
slavikrds [6]

Answer:

The Completed lost of Library is

Explanation: $1224880

Solution

Given that:  

                                     Amount Period Average expenditure

Accumulated

expenditure Jan 1         735000     9/9         735000

Feb. 28                          99000       7/9          77000

Apr. 30                          189000      5/9          105000

Jul. 1                               45000       3/9           15000

Sept. 30                         73000        0                  0

Average Accumulated

expenditure                   1141000                       932000

Interest to be capitalized = 932000*12%*9/12= $83880

The Completed lost of Library = 1141000+83880= $1224880

8 0
3 years ago
Which of the following actions has NO impact on your credit score?
cluponka [151]
Your credit score is affected when you use money or open credit cards so the answer would be A
8 0
3 years ago
Negative items on a credit report that are not correct:
Sav [38]
Answer:
C

Explanation:

Something with a mistake is never best ignored it’s best if they change it and get it corrected.
5 0
3 years ago
If you don't know how much you will spend in a particular category such as clothing, you should
Klio2033 [76]
Find out how much you have look at what clothing you need then look for the best prices and try to find some discounts so you can save some money so just maby you can get another product with the money you saved.

6 0
2 years ago
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