1 casha 6000 c o mmo n 6000 issuedcommonstock

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Unformatted text preview: 2012 Cash from operating activities: Net income 22,000 Adjustments: $ $ Increase in accounts receivable (60,000) Increase in inventory (15,000) Increase in accounts payable 15,000 Increase in operating expense payable 15,000 Total adjustments (45,000) Net cash increase (decrease) due to operating activities (23,000) $ Cash from investing activities: Purchase of fixed assets (25,000) Cash from financing activities: Proceeds from owner's contribution 20,000 Proceeds from bank loan 60,000 Principal repayment on debt (5,000) Payment of dividend (2,000) $ Net cash increase (decrease) due to financing activities 73,000 Net increase (decrease) in cash $ 25,000 Beginning cash balance, January 1, 2012 0 Ending cash balance, December 31, 2012 $ 25,000 E14–9 a. 1. Cash (+A) 6,000 C o mmo n 6,000 Issued common stock. Inventory (+A) 6,000 Accounts Payable (+L) 6,000 Stock (+SE) 2. Purchased inventory on account. 3. Equipment (+A) 5,000 Cash (–A) 5,000 Purchased equipment. 4. Cash (+A) (–A) Collected cash from customers. 10,000 Accounts Receivable 10,000 E14–9 Continued 5. Accounts Payable (–L) 5,000 Cash (–A) 5,000 Made payment to suppliers. 6. Dividend (–SE) 2,000 Cash (–A) 2,000 Declared and paid cash dividend. 7. Rent Expense (E, –SE) Prepaid Rent (+A) 6,000 6,000 Cash (–A) 12,000 Disbursed cash for rent. 8. Cash (+A) Accounts Receivable (+A) 65,000 35,000 Sales (R, +SE) 100,000 Made sales. 9. Miscellaneous Expenses (E, –SE) 40,000 Cash (–A) 40,000 Incurred and paid miscellaneous expenses. 10. Cash (+A) (–A) Marketable Securities (Ga, +SE) Sold marketable securities. b. Cash (B.B.) (1) 6,000 (4) 10,000 (8) 65,000 (10) 25,000 25,000 (3 ) (5 ) (6 ) (7 ) (9 ) (E.B.) 67,000 5,000 5,000 2,000 12,000 40,000 25,000 Marketable Securities 20,000 Gain on Sale of 5,000 E14–9 Concluded c. Driftwood Shipbuilders Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from operating activities: Cash collections from customers 75,000 Cash payments for rent Cash payments for miscellaneous expenses Cash payments for inventory activities 18,000 Cash...
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This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

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