Malco Enterprises issued $12,00 of common stock when the company was started. In addition, Malco borrowed $38,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $74,700 of revenue on account in Year 1 and $87,200 of revenue on account in Year 2. Cash collections of accounts receivable were $63,300 in Year 1 and $73,500 in Year 2. Malco paid $40,800 of other operating expenses in Year 1 and $47,000 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date. Based on this information given above, record the events in the accounting equation then answer the following questions. Enter any decreases to account balances with a minus sign. a. what amount of interest expense would Malco report on the Year 1 income statement? b. what amount of net cash flow from operating activites would Malco report on the Year 1 statement of cash flows? c. what amount of total liabilities would Malco report on the December 31, Year 1, balance sheet?
Malco Enterprises issued $12,00 of common stock when the company was started. In addition, Malco borrowed $38,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $74,700 of revenue on account in Year 1 and $87,200 of revenue on account in Year 2. Cash collections of
Based on this information given above, record the events in the
a. what amount of interest expense would Malco report on the Year 1 income statement?
b. what amount of net cash flow from operating activites would Malco report on the Year 1 statement of
c. what amount of total liabilities would Malco report on the December 31, Year 1, balance sheet?
d. what amount of
e. what amount of net cash flow from financing activites would Malco report on the Year 1 statement of cash flows?
f. what amount of interest expense would Malco report on the Year 2 income statement?
g. what amount of net cash flow from operating activites would Malco report on the Year 2 statement of cash flows?
h. what amount of total assets would Malco report on the December 31, Year 2 balance sheet?
i. what amount of net cash flow from investing activities would Malco report on the Year 2 statement of cash flows?
j. if Malco Enterprises paid a $2,200 dividend during Year 2, what retained earnings balance would it report on the December 31, Year 2, balance sheet?
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