Lbeeno

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Unformatted text preview: ivable – 2012 Beginning accounts receivable – 2012 Ending deferred revenue + 2012 Beginning deferred revenue = $65,000 + $3,000 – $9,000 – $4,000 + $1,000 = $56,000 Accrual­Basis COGS 2012 COGS = Cash disbursements during 2012 for inventory – 2012 Ending inventory + 2012 Beginning inventory + 2012 Ending accounts payable – 2012 Beginning accounts payable = $40,000 – $18,000 + $10,000 + $7,000 – $3,000 = $36,000 E14–16 Concluded Accrual­Basis Wage Expense 2012 Wage expense = Cash disbursements during 2012 for wages + 2012 Ending wages payable – 2012 Beginning wages payable = $6,000 + $2,100 – $1,300 = $6,800 Accrual­Basis Advertising Expense 2012 Advertising expense = Cash disbursement during 2012 for advertising – 2012 Ending prepaid advertising + 2012 Beginning prepaid advertising = $1,000 – $5,000 + $8,000 = $4,000 Depreciation Expense 2012 Depreciation expense = 2012 Ending accumulated depreciation – 2012 Beginning accumulated depreciation = $8,000 – $5,000 = $3,000 Schlee and Associates Income Statement For the Year Ended December 31, 2012 Sales Cost of goods sold Wage expense Advertising expense Depreciation expense Net income $ $ 56,000 (36,000) (6,800) (4,000) (3,000) 6,200 E14–17 L.L. Beeno Operating Section – Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2012 Cash from operating activities: Cash receipts from revenues Cash payments for inventory Cash payments for wages Cash payments for insurance Cash payments for interest Cash payments for taxes Net cash increase (decrease) due to operating activities $ 45,900 (26,400) (5,100) (3,900) (1,600) _(1,200) $ 7,700 E14–17 Concluded L.L. Beeno Operating Section – Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2012 Cash flows from operating activities: Net income Adjustments: Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in wages payable Total adjustments Net cash increase due to operating activities $ $ 3,300 (1,100) 300 300 (1,700) 1,100...
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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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