Accounting E15-3, E17-4, E17-5 - Depreciation expense...

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E15-3 (a) Jan. 1 Cash  500,000  Bonds Payable  500,000  (b) July. 1 Interest Expense  25,000  Cash  25,000  (c) Dec. 31 Interest Expense  25,000  Interest Payable  25,000 
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E17-4 Cash flows from operating activities Net income  195,000  Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense  45,000  Loss on sale of equipment  5,000  Increase in accounts payable  17,000  Decrease in accounts receivable  15,000  Decrease in prepaid expenses  4,000   86,000  Net cash provided by operating activities  281,000 
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E17-5 Cash flows from operating activities Net income $153,000  Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense ) $24,000  Decrease in inventory )  14,000  Increase in accrued expenses payable  10,000  Increase in prepaid expenses  (5,000) Decrease in accounts payable  (7,000) Increase in accounts receivable  (21,000) 15,000 Net cash provided by operating activities $168,000 
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Her Version $153,000 
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Unformatted text preview: Depreciation expense $24,000 Increase in accounts receivable (21,000) Decrease in inventory 14,000 Increase in prepaid expenses (5,000) Increase in accrued expenses payable 10,000 Decrease in accounts payable (7,000) $168,000 Supplemental Question #3 a) 500,000 b) 6.50% May. 1 Cash 500,000 Bonds Payable 500,000 Oct. 31 Interest Expense 16,250 Cash 16,250 Drc. 31 Interest Expense 5,416 Interest Payable 5,416 April. 31 Interest Payable 5,416 Interest Expense 10,834 Cash 16,250 ECL's bonds are priced at 100% Supplemental Question #4 c) Premium d) Discount Mar. 1 Cash 294,000 Discount on B/P 6,000 Bonds Payable 300,000 Aug. 31 Interest Expense 9,000 Cash 9,000 Interest Expense 150 Discount on B/P 150 Drc. 31 Interest Expense 6,000 Interest Payable 6,000 Interest Expense 100 Discount on B/P 100 Feb. 28 Interest Payable 6,000 Interest Expense 3,000 Cash 9,000 Interest Expense 50 Discount on B/P 50...
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This note was uploaded on 03/28/2011 for the course ACCOUNTING 101 taught by Professor Bob during the Spring '10 term at Rowan-Cabarrus Community College.

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Accounting E15-3, E17-4, E17-5 - Depreciation expense...

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