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zhuklara [117]
3 years ago
7

A company prepared the following journal entry:

Business
1 answer:
sineoko [7]3 years ago
6 0

Answer:

D. CFFO decreases by $8,000.

Explanation:

First and foremost, the amortization of discount on bonds payable would increase the book value of the bond by $2,000 since discount amortized is added to book value while premium amortized is deducted.

As a result, option A which stated that bonds payable book value increases by $8000 is wrong as well as option C since a  discount amortization increases bonds payable book value and not the way around.

Cash account with a credit of $8,000 showed that the cash paid to bondholders was $8,000, hence, cash flows from operations (CFFO) should decrease by $8,000

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On January 2 Kelly company performed $800 worth of services for a client. The client paid $100 immediately, but promised to pay
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Answer:

$100, $700, $800

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Calley Journal entries would include:

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We debit all asset accounts(receivables,cash) when increased and credit all liabilities account when increased. We credit all income account(revenue) when increased and debit all expenses account when increased.

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Answer:

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