P1419 a originalentries 1a casha commonstockse

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Unformatted text preview: ts receivable 5,000 Decrease in prepaid insurance 10,000 Increase in accounts payable Increase in inventory 1,000 (100,000) Decrease in premium on bonds payable (2,000) Gain on sale of plant equipment (10,000) Total adjustments (84,000) Net cash decrease due to operating activities $ (47,000) Cash flows from investing activities: Proceeds from sale of plant equipment 90,000 Purchase of plant equipment (25,000) $ Net cash increase due to investing activities 65,000 Cash flows from financing activities: Proceeds from common stock issue 65,000 Payment of dividends (30,000) $ Net cash increase due to financing activities 35,000 Net increase in cash $ 53,000 Beginning cash balance, January 1, 2012 120,000 Ending cash balance, December 31, 2012 $ 173,000 P14–18 a. 2011 Cash collections from customers: Sales for cash Cash collections from accounts receivable Total cash collections from customers 8,570,000c Cash payments for: Salary Advertising Administrative expenses Janitorial expense Supplies Total cash paid for expenses (3,543,000) Net cash increase due to operating activities 5,027,000 $ 3,633,500a 4,936,500b $ $ 1,649,000d 710,000 832,000 120,000 232,000e $ a $3,633,500 = 2011 sales of $5,590,000 65% b Cash collections = Sales on account + Decrease in accounts receivable = ($5,590,000 35%) + $2,980,000 = $4,936,500 c An alternative approach to calculating the $8,570,000 is to add the decrease in Accounts Receivable during 2011 of $2,980,000 to the 2011 sales of $5,590,000. d $1,649,000 = Salary expense of $1,794,000 – Salary payable of $145,000 e $232,000 = Supplies expense of $299,000 – Supply inventory payable of $67,000 2012 Cash collections from customers: Sales for cash Cash collections from accounts receivable Total cash collections from customers 4,295,250c Cash payments for: Salary Advertising Administrative expenses Janitorial expense Supplies $ 1,491,750a 2,803,500b $ $ 2,145,000d 705,000e 898,000 132,000 348,000f Total cash paid for expenses (4,228,000) Net cash increase due to operating activities 67,250 $ a $1,491,750 b $2,803,500 = 2012 sales of $5,967,000 25% = Sales...
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