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notsponge [240]
3 years ago
11

The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: Performed $64,500 of

services for clients on account. Performed $41,000 of services for cash. Incurred $30,000 of other operating expenses on account. Paid $15,500 cash to an employee for salary. Collected $50,000 cash from accounts receivable. Paid $16,000 cash on accounts payable. Paid an $5,000 cash dividend to the stockholders. Accrued salaries were $2,200 at the end of Year 1.
Required
a. Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)
b. What is the amount of total assets at the end of 2014?
c. What is the balance of accounts receivable at the end of 2014?
d. What is the balance of accounts payable at the end of 2014?
f. What is net income for 2014?
g. What is the amount of net cash flow from operating activities for 2014?
Business
1 answer:
charle [14.2K]3 years ago
8 0

Answer:

a) I used an excel spreadsheet since there is not enough room here.

b) $69,000

c) $14,500

d) $14,000

f) $57,800

g) $59,500  

Download pdf
You might be interested in
Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $77,980. The company estimated that the machine has a s
Marysya12 [62]

Answer:

Depreciation for

2017 = $2,540

2018 = $10,160

Explanation:

Provided, Total cost of the machine = $77,980

Estimated salvage value = $6,860

Therefore, value to be depreciated = $77,980 - $6,860 = $71,120

Total life of asset = 7 years

Depreciation for the year 2017 = October to December = 3 months

\frac{71,120}{7} \times \frac{3}{12} = $2,540

Depreciation for the year 2018 = \frac{71,120}{7} = $10,160

Under straight line method depreciation is fixed for each year, but in the given case in 2017 the asset is used only for 3 months, thus depreciation will be charged for 3 months only.

Final Answer

Depreciation for

2017 = $2,540

2018 = $10,160

7 0
3 years ago
Eight-year-old Ella can use scissors to cut small paper dolls out of craft paper, something she could not do at age three. What
Romashka [77]

Answer: Increased myelination of the central nervous system

Explanation: skill in performing tasks, especially with the hands is what is known as dexterity. According to the question Eight-year-old Ella can use scissors to cut small paper dolls out of craft paper, something she could not do at age three was due to her Increased myelination of the central nervous system. Her dexterity has improved, Myelin has enabled her nerve cells to transmit information faster and allows for more complex brain processes

3 0
3 years ago
The Murdock Corporation reported the following balance sheet data for 2021 and 2020:
Alex_Xolod [135]

Answer:

The Murdock Corporation

Statement of Cash Flows for the year ended December 31, 2021

Operating activities (only):

Net income                                $69,000

Depreciation expense                  51,100

Gain on sale of securities            (6,400)

Gain on sale of equipment          (1,950)

Changes in working capital:

Accounts receivable                 (13,650)

Inventory                                   (21,900)

Prepaid insurance                          690

Accounts payable                    (74,230)

Salaries payable                        (6,400)

Notes payable (current)          (51,900)

Cash flow from operations ($55,640)

Explanation:

a) Data and Calculations:

                                                     2021           2020        Change

Cash                                         $98,465       $34,355      +$64,110

Available-for-sale debt securities

 (not cash  equivalents)             25,000       104,000       -79,000

Accounts receivable                 99,000         85,350       +13,650

Inventory                                  184,000        162,100       +21,900

Prepaid insurance                       3,210           3,900            -690

Land, buildings, and

 equipment                         1,288,000     1,144,000     +144,000

Accumulated depreciation  (629,000 )   (591,000 )     +38,000

Total assets                       $1,068,675   $942,705

Accounts payable                  $93,440    $167,670       -74,230

Salaries payable                      27,600        34,000        -6,400

Notes payable (current)           42,100       94,000       -51,900

Bonds payable                       219,000       0              +219,000

Common stock                     300,000     300,000     0

Retained earnings                386,535     347,035      +39,500

Total liabilities and

shareholders' equity       $1,068,675   $942,705

Additional information for 2021:

1. Available=for-sale debt securities:

Cost = $79,000

Sales =  85,400 Cash

Profit =  $6,400

2. Equipment:

Cost =     $20,000

Acc. Dep.    13,100

Book value 6,900

Cash sales 8,850

Profit =        1,950

Accumulated Depreciation:

Beginning balance   $591,000

Sale of equipment       (13,100)

Depreciation expense 51,100

Ending balance        629,000

3. Bonds issue = $219,000

Interest on bonds = 13,140 ($219,000 * 6%)

4. Purchase of new equipment = $164,000

5. Cash dividends = $29,500

6. Net income = $69,000

Statement of Cash Flows for the year ended December 31, 2021

Operating activities:

Net income                                $69,000

Depreciation expense                  51,100

Gain on sale of securities            (6,400)

Gain on sale of equipment          (1,950)

Changes in working capital:

Accounts receivable                 (13,650)

Inventory                                   (21,900)

Prepaid insurance                          690

Accounts payable                    (74,230)

Salaries payable                        (6,400)

Notes payable (current)          (51,900)

Cash flow from operations ($55,640)

Investing activities:

Sale of equipment                    8,850

Purchase of equipment      (164,000)

Available-for-sale debt securities

 (not cash  equivalents)        85,400

Cash flow from investing ($69,750)

Financing activities:

Issue of bonds                    219,000

Dividends                            (29,500)

Cash from financing         $189,500

Net Cash flows                    $64,110

Reconciliation:

Beginning cash balance   $34,355

Net Cash flows                   $64,110

Ending cash balance        $98,465

5 0
2 years ago
The most noticeable difference between common-law and code-law systems is found in the laws governing _____.
Elis [28]

The laws governing intellectual property are where common-law and code-law systems most obviously diverge. 

<h3>What is intellectual property ?</h3>

The collection of intangible assets that a company or person possesses and is legally entitled to guard against illegal use or application by third parties is referred to as intellectual property.

The concept of intellectual property was developed on the premise that some works produced by the human mind should be afforded the same legal protections as material possessions.

Hence, the difference between common-law and code-law systems is found in the laws pertaining to intellectual property.

Learn more about Intellectual property here:

brainly.com/question/17348419

#SPJ1

6 0
1 year ago
Linda has signed a two-year long contract with HNS Inc., a clothing retail store, to work as a sales trainee. Linda’s parents ar
alekssr [168]

Answer:

Mutual assent.

Explanation:

Since Linda is not yet 18 years old her parents should give assent on the contract of sales trainee.

3 0
3 years ago
Read 2 more answers
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