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2 years ago

Partial balance sheets and additional iformation are listed below for Sowell Company.

Business

1 answer:

musickatia [10]2 years ago

3 0

Answer and Explanation:

The preparation of the operating activities section is presented below

Cash Flows from operating activities

Net Income $88,000

Adjustment made for non cash items:

Depreciation Expense $19,000

Add: Decrease in Account Receivable $15000 ($70,000 - $85,000)

Less: Increase in Inventory $(5000) ($40,000 - $35,000)

Less: Decrease in accounts payable $(8000) ($54,000 - $62,000)

Net cash flows from operating activities $109,000

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Answer: sunk costs don't increase as driving increases.

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2 years ago

When gathering information which of the following task might you need to perform

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Answer:

take notes, research that information

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2 years ago

Exercise 5-15B Record notes receivable and interest revenue (LO5-7) On March 1, Company A provides legal services to Company B r

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Answer:

March 1: Note acceptance

Debit Note receivable $9,100

Credit Accounts receivable $9,100

(To record note receivable from Company B)

Sept 1: Cash collection

Debit Cash $9,100

Credit Note receivable $9,100

(To record cash collection of note receivable)

Debit Cash $364

Credit Interest receivable $364

(To record cash collection of interest receivable on note)

Explanation:

Note is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

Interest revenue on the note is calculated as: Principal x Interest Rate x Time

The total interest revenue is $9,100 x 8%/12 x 6 months = $364.

Monthly interest revenue is therefore $364 / 6 months = $60.67.

The 6 months is from March 1 to Sept. 1.

On a monthly basis, Company A would accrue for the interest revenue as follows:

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Credit Interest revenue $60.67

(Interest accrual on notes receivable)

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3 years ago

On December 31, the company estimates future sales refunds to be $900. As of that date, the company has an unadjusted debit bala

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Answer:

Date Account titles and Explanation Debit Credit

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Sales refund payable $600

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(To record the expected refund of sales)

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3 years ago

Payments from customers received before performing services for the customers are recorded as

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3 years ago