Week 2 Assignment 2 - E4-16The following summary...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: E4-16The following summary transactions occurred during 2011 for Bluebonnet Bakers:Required:Cash Received from:Customers $380,000Interest on note receivable 6,000Principal on note receivable 50,000Sale of investments 30,000Proceeds from note payable100,000Cash Paid for:Purchase of inventory 160,000Interest on note payable 5,000Purchase of equipment85,000Salaries to employees 90,000Principal on note payable25,000Payment of dividends to shareholders20,000The balance of cash and cash equivalents at the beginning of 2011 was $17,000.Required:Prepare a statement of cash flows for 2011 for Bluebonnet Bakers. Use the direct method for reporting operating activities.Statement of Cash FlowsBluebonnet Bakers2011Cash flows from operating activitiesCash received from customers $380,000 Cash paid for merchandise $160,000 Cash paid for wages and other operating expenses $90,000 Cash paid for interest $5,000 Cash paid for taxes $0 Other $0 Net cash provided (used) by operating activities$635,000 Cash flows from operating activitiesE4-19The following transactions occurred during March 2011 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. [These are the same transactions analyzed in Exercise 21, when we determined their effect on elements of the accounting equation.]1.Issued 30,000 shares of capital stock in exchange for $300,000 in cash.2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.3.Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 4.Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5.Paid $5,000 in rent on the warehouse building for the month of March.6. Paid $6,000 to an insurance company for fire and liability insurance for a one year period beginning April 1, 2011. 7.Paid $70,000 on account for the merchandise purchased in 3....
View Full Document

This note was uploaded on 08/19/2011 for the course ACC 305 ACC 305 taught by Professor Stern during the Spring '11 term at Ashford University.

Page1 / 8

Week 2 Assignment 2 - E4-16The following summary...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online