CASH -220 A/P -220 ADD QUESTION HEREESSAY 0 POINTS MODIFY REMOVEQUE...
7. Cash -220
A/P -220
Add Question Here
Essay
0 points
Modify
Remove
Question From the following list of accounts taken from Lamar’s accounting records, identify those that would appear on the Income Statement.
(a)
Rent Expense
(b)
Land
(c)
Capital
(d)
Fees Earned
(e)
Withdrawal
(f)
Wages Expense
(g)
Investment
Answer
(a), (d), (f)
Question Identify which of the following accounts appear on a balance sheet.
(a)
Cash
(b)
Fees Earned
(c)
Joe Brown, Capital
(d)
Wages Payable
(e)
Rent Expense
(f)
Prepaid Advertising
(g)
Land
Answer
(a), (c), (d), (f), (g)
Question Indicate whether each of the following activities would be reported on the Statement of Cash Flows as an Operating Activity, an Investing
Activity, a Financing Activity, or does not appear on the Cash Flow Statement.
(a)
Cash paid for building
(b)
Cash paid to suppliers
(c)
Cash paid for owner's withdrawal
(d)
Cash received from customers
(e)
Cash received from the owner's investment
(f)
Cash received from the sale of a building
(g)
Borrowed cash from a bank
Answer
(a)
Investing
(b)
Operating
(c)
Financing
(d)
Operating
(e)
Financing
(f)
Investing
(g)
Financing
Question For each of the following, determine the amount of net income or net loss for the year.
(a)
Revenues for the year totaled $88,500 and expenses totaled $40,500. The owner made an additional investment of $15,000 during
the year.
(b)
Revenues for the year totaled $175,000 and expenses totaled $220,500. The owner withdrew $40,000 during the year.
(c)
Revenues for the year totaled $109,000 and expenses totaled $46,000. The owner invested an additional $12,000 and withdrew
$16,000 during the year.
(d)
Revenues for Konner Co. totaled $223,800 and expenses totaled $221,300. Cash withdrawals of $35,000 were paid during the year.
Answer
(a)
$48,000 net income ($88,500 - $40,500)
(b)
$45,500 net loss ($175,000 - $220,500)
(c)
$63,000 net income ($109,000 - $46,000)
(d)
$2,500 net income ($223,800 - $221,300)
Question The total assets and total liabilities of Paul’s Pools, a proprietorship, at the beginning and at the end of the current fiscal year are as
follows:
Jan. 1
Dec. 31
Total assets
$280,000
$475,000
Total liabilities
205,000
130,000
(a)
Determine the amount of net income earned during the year. The owner did not invest any additional assets in the business
during the year and made no withdrawals.
(b)
Determine the amount of net income during the year. The assets and liabilities at the beginning and at the end of the year are
unchanged from the amounts presented above. However, the owner withdrew $53,000 in cash during the year (no additional
investments).
(c)
Determine the amount of net income earned during the year. The assets and liabilities at the beginning and at the end of the
year are unchanged from the amounts presented above. However, the owner invested an additional $35,000 in cash in the
business in June of the current fiscal year (no withdrawals).
(d)
Determine the amount of net income earned during the year. The assets and liabilities at the beginning and at the end of the
year are unchanged from the amounts presented above. However, the owner invested an additional $12,000 in cash in August
of the current fiscal year and made twelve monthly cash withdrawals of $1,500 each during the year.
Answer
(a)
Owner's equity at end of year ($475,000 - $130,000)
$345,000
Owner's equity at beginning of year ($280,000 - $205,000)
75,000
Net
income
$270,000
(b)
Increase in owner's equity as in (a)
$270,000
Add
withdrawals
53,000
Net
income
$323,000
(c)
Increase in owner's equity as in (a)
$270,000
Deduct additional investment
35,000
Net
income
$235,000
(d)
Increase in owner's equity as in (a)
$270,000
Add withdrawals ($1,500 x 12)
18,000
$288,000
Deduct additional investment
12,000
Net
income
$276,000
Question Selected transaction data of a business for September are summarized below. Determine the following amounts for September: (a)
total revenue, (b) total expenses, (c) net income.
Service sales charged to customers on account during September
$33,000
Cash received from cash customers for services performed in September
28,000
Cash received from customers on account during September:
Services performed and charged to customers prior to September
13,000
Services performed and charged to customers during September
18,000
Expenses incurred prior to September and paid during September
6,500
Expenses incurred and paid in September
36,250
Expenses incurred in September but not paid in September
5,000
Expenses for supplies used and insurance (not included above) applicable to September
2,000
Answer
(a)
$61,000 ($33,000 + $28,000)
(b)
$43,250 ($36,250 + $5,000 + $2,000)
(c)
$17,750 ($61,000 - $43,250)
from the business. The amounts of the various assets, liabilities, revenues, and expenses are as follows:
Accounts payable
$ 10,250
Accounts receivable
45,950
Cash
19,390
Fees earned
60,500
Insurance expense
1,275
Land
85,400
Miscellaneous expense
1,210
Prepaid insurance
3,000
Rent expense
9,000
Salary expense
20,300
Supplies
900
Supplies expense
525
Utilities expense
2,800
Present, in good form, (a) an income statement for March, (b) a statement of owner's equity for March, and (c) a balance sheet as of March 31.
Answer
(a)
Cook’s Catering Company
Income Statement
For the Month Ended March 31, 2011
Fees earned
$60,500
Operating expenses:
Salary expense
$20,300
Rent expense
9,000
Utilities expense
2,800
Supplies expense
525
Insurance expense
1,275
Miscellaneous expense
1,210
Total operating expenses
35,110
Net income
$25,390
(b)
Statement of Owner's Equity
Norton Cook, capital, March 1, 2011
$150,000
Net income for the month
$ 25,390
Less withdrawals
31,000
Decrease in owner's equity
5,610
Norton Cook, capital, March 31, 2011
$144,390
(c)
Balance Sheet
March 31, 2011
Assets
Liabilities
Cash
$ 19,390
Accounts payable
$ 10,250
Accounts receivable
45,950
Prepaid insurance
3,000
Owner's Equity
Supplies
900
Norton Cook, capital
144,390
Land
85,400 Total
liabilities
and
Total assets
$154,640
owner's equity
$154,640
Question Simpson Designers began operations on April 1, 2011. The financial statements for Simpson Designers are shown below for the month
ended April 30, 2011 (the first month of operations). Determine the missing amounts for letters (a) through (o).
Simpson Designers
For the Month Ended April 30, 2011
Fees earned
$27,000
Wages expense
$5,250
Rent expense
(a)
Supplies expense
4,600
Utilities expense
400
Miscellaneous expense
1,250
Total operating expenses
(b)
Net income
$ (c)
Lori Simpson, capital, April 1, 2011
0
Investment on April 1, 2011
$35,000
Net income for April
(d)
$ (e)
Less withdrawals
6,000
Increase in owner's equity
(f)
Lori Simpson, capital, April 30, 2011
$38,100
April 30, 2011
Cash
$ (g)
Accounts payable
$ (i)
Supplies
8,100 Owner's
Equity
Land
(h)
Lori Simpson, capital
(j)
Total assets
$55,900
Total liabilities and
owner's equity
$(k)
Statement of Cash Flows
Cash flows from operating activities:
Cash received from customers
$23,000
Deduct cash payments for expenses and payments to