Enter Tim\'s Tams, Inc.\'s May transactions and adjustments in the accounting eq

Question

Enter Tim's Tams, Inc.'s May transactions and adjustments in the accounting equation below.
1. May 1, paid 600 $ cash for 3 months for insurance coverage beginning May 1.
2. May 2, collected 8,000 $ from customers for sales made in April.
3. May 6, paid 7,200 $ of accounts payable from April purchase.
4. May 6 , purchased 800 caps @ $6.10 each on account, FOB shipping point. Shipping was $120 also on account.
5. May 8, paid 300 $ cash for supplies
6. May 31, during May, Tim's Tams sold 1,000 baseball caps @ $ 10 each on account. Tim's uses a FIFO perpetual inventory system. Beginning inventory consists of 500 caps at 6$ each.
7. May 31, Tim's Tams declared and paid 400 cash dividend to its shareholder.
8. May 31, Adjusted for insurance used during the month. Recall that on May 1, Tim's Tams paid $ 600 for three months of insurance coverage that began May 1.
9. May 31, Recorded one month's straight line depreciation on the $ 18,000 truck that gas a 6-year useful life and no salvage value.
10. May 31, counted the office supplies and found that $ 100 of supplies have not been used.
11. May 31, Recorded interest on the $ 16,000, 4 – month, 6 % note payable for the month.

There was a bginning balance sheet at 5/1/10 with this amounts:
• Assests:
5,155 cash
8,000 account receivable
3,000 inventory
200 supplies
18,000 truck
(500) account depration.

• Liabilities :
7,200 account payable
16,000 note payable
160 interest payable

• Contributed capital :
6,000 common stock

• Retained earnings :
4,495 retained earning


i need an expert help. what is Tim's Tams statment of cash flows for the month ended May31,2010.
thank

Explanation / Answer

Stattement of cash flow May Cash sales Collection of accounts receivable 8000 Total cash receipts 8000 Estimated cash payments for: Insurance 600 Accounts payable 7200 Supplies 300 Dividends 400 Notes payable (including interest) Income tax Dividends Total cash payments 8500 Cash increase (decrease) (Use minus sign for decreases.) -500 Cash balance at beginning of month 5155 Cash balance at end of month 4655 Minimum cash balance Excess or (deficiency) (Use the minus sign for a deficiency) 4655

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