Additional information: Accounts payable pertain to the purchase of inventory. P
ID: 2438578 • Letter: A
Question
Additional information:
Accounts payable pertain to the purchase of inventory.
Plant assets were sold for $40,000. The cost of the plant assets was $40,000.
All dividends are cash.
Cash received/collected from customers is:
Purchases for the year is:
Cash paid to suppliers is:
Depreciation expense is:
Cash paid for operating expenses is:
Cash paid for interest is:
Cash paid for income taxes is:
Cash provided by/(used in)* operating activities is:
Cash provided by/(used in)* investing activities is:
Cash paid for dividends is:
Cash provided by/(used in)* financing activities is:
If Rent Expense for the period was $20,000, the Cash paid for Prepaid Rent is:
If your answer is cash “used in”, you must indicate this by writing your answer in parenthesis. For example, ($10,000). If your answer is cash “provided by”, you must write your answer without parentheses.
Balance Sheet December 31 2005 Assets Cash Accounts receivable Inventories Prepaid Rent Investments Plant assets Accumulated depreciation $ 20,000 160,000 80,000 15,000 100,000 210,000 $ 10,000 110,000 50,000 10,000 75,000 250,000 (65.000) 60,000 Total 000 $445,000 Liabilities and Stockholders' Equi Accounts payable Interest payable Income tax payable Note payable Common stock Retained eamings $ 50,000 20,000 5,000 130,000 155,000 160,000 $ 40,000 5,000 10,000 140,000 100,000 150,000 $445.000 Total Income Statenent For the Year Ended December 31, 2005 Sales Cost of goods sold Gross Profit Operating expenses (including Depreciation Expense) Interest expense Income tax expense $800,000 480,000 320,000 120,000 20,000 25.000 Total 165,000 155,000 5,000 S 160.000 Income before Gains and Losses ai n on sale of plant asset Net incomeExplanation / Answer
Solution
Then Items marked bold are the answers to respective questions
1. Cash Received from customers (Account Receivable account)
Particulars
Amount
Opening Balance
110000
Add: Sales
800000
Less: Collection
750000
Closing Balance
160000
2. Purchases (Inventory)
Particulars
Amount
Opening Balance
50000
Add: Purchase
510000
Less: Issued for Production
480000
Closing Balance
80000
3. Cash Paid to the supplier (Account Payable Account)
Particulars
Amount
Opening Balance
40000
Add: Purchase(above solution)
510000
Less: Cash Paid
500000
Closing Balance
50000
4. Depreciation
Asset costing 40000 is sold for 40000 which apparently are sold for no gain, but Income statement suggests the gain of 5000 which means carrying a value of the asset on the date of sale was 35000. So 5000 was depreciation charged on that asset
Particulars
Amount
Opening Balance
60000
Add: Depreciation of current year
10000
Less: Depreciation on sale of asset
5000
Closing Balance
65000
5. Cash Paid for Operating Expense
Particulars
Amount
Expense as per income statement
120000
Less: Depreciation(Non-Cash EXPS)
10000
Cash Operating Expense
110000
6. Cash Paid for Interest( Interest Payable)
Particulars
Amount
Opening Balance
5000
Add: Current Year Interest (from the income statement)
20000
Less: Interest Paid
5000
Closing Balance
20000
1. Cash Received from customers (Account Receivable account)
Particulars
Amount
Opening Balance
110000
Add: Sales
800000
Less: Collection
750000
Closing Balance
160000
2. Purchases (Inventory)
Particulars
Amount
Opening Balance
50000
Add: Purchase
510000
Less: Issued for Production
480000
Closing Balance
80000
3. Cash Paid to the supplier (Account Payable Account)
Particulars
Amount
Opening Balance
40000
Add: Purchase(above solution)
510000
Less: Cash Paid
500000
Closing Balance
50000
4. Depreciation
Asset costing 40000 is sold for 40000 which apparently are sold for no gain, but Income statement suggests the gain of 5000 which means carrying a value of the asset on the date of sale was 35000. So 5000 was depreciation charged on that asset
Particulars
Amount
Opening Balance
60000
Add: Depreciation of current year
10000
Less: Depreciation on sale of asset
5000
Closing Balance
65000
5. Cash Paid for Operating Expense
Particulars
Amount
Expense as per income statement
120000
Less: Depreciation(Non-Cash EXPS)
10000
Cash Operating Expense
110000
6. Cash Paid for Interest( Interest Payable)
Particulars
Amount
Opening Balance
5000
Add: Current Year Interest (from the income statement)
20000
Less: Interest Paid
5000
Closing Balance
20000
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