200 CREDITORSNET CASH FLOW FROM OPERATING ACTIVITIES $ 18,800CASH FL...

4,200

creditors

Net cash flow from operating activities

$ 18,800

Cash flows from investing activities:

Cash payments for acquisition of land

(17,000)

Cash flows from financing activities:

Cash received as owner's investment

$ (l)

Deduct cash withdrawal by owner

(m)

Net cash flow from financing activities

(n)

Net cash flow and April 30, 2011 cash balance

$ (o)

Place your answers in the space provided below. Hint: Use the interrelationships among the financial statements to solve this problem.

(a)

___________

(b)

___________

(c)

___________

(d)

___________

(e)

___________

(f)

___________

(g)

___________

(h)

___________

(i)

___________

(j)

___________

(k)

___________

(l)

___________

(m)

___________

(n)

___________

(o)

___________

Answer

(a)

$ 6,400

(b)

$17,900

(c)

$ 9,100

(d)

$ 9,100

(e)

$44,100

(f)

$38,100

(g)

$30,800

(h)

$17,000

(i)

$17,800

(j)

$38,100

(k)

$55,900

(l)

$35,000 given

(m)

$ 6,000

(n)

$29,000

(o)

$30,800

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Question Eric Wood, CPA, was organized on January 1, 2011, as a proprietorship. List the errors that you find in the following financial statements

and prepare the corrected statements for the three months ended March 31, 2011.

Eric Wood, CPA

Income Statement

For the Three Months Ended March 31, 2011

Fees earned

$42,000

Operating expenses:

Salary expense

$9,735

Rent expense

5,200

Advertising expense

3,950

Utilities expense

3,225

Miscellaneous expense

4,000

Answering service expense

2,550

Supplies expense

4,000

Total operating expenses

28,000

Net income

$14,000

Statement of Owner's Equity

March 31, 2011

Eric Wood, capital, January, 1, 2011

$ 0

Investment on January 1, 2011

$20,000

Net income for the 3 months

14,000