Loose Leaf for Financial Accounting: Information for Decisions
Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 2, Problem 7GLP

1.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.   

To prepare: The general journal entries for the following transaction.

1.

Expert Solution
Check Mark

Explanation of Solution

    September ParticularPRDr.Cr.
    a.Cash10160,000
    Office Equipment16325,000
    To capital30185,000
    (Owner’s investment)
    b.Land17240000
    Building17016000
    Cash10130000
    Notes payable 250170000
    (To record the purchase of land building with cash and notes payable)
    c.Office supplies1082000
    To account payable2012000
    (Purchased office equipment and office supplies)
    d. Automobile16416,500
    Capital30116,500
    (to record the owner’s investment
    e.Office equipment 1635600
    Account payable2015600
    (to record the purchased office equipment on credit)
    f. Salaries expense6011800
    To cash1011800
    (to record the cash paid for salary)
    GCash1018000
    Fees earned4028000
    h. Utilities expense602635
    To Cash101635
    (Paid cash for utilities)
    i. Account payable 2012000
    Cash1012000
    (to record the cash paid that was due)
    j. Office equipment 16320300
    Cash10120300
    (to record the purchase of office equipment by paying cash)
    KAccount receivable1066250
    Fees earn4066250
    (to record the service provided on credit)
    l.Salaries expenses6011800
    Cash1011800
    m. Cash 1014000
    Account receivable 1064000
    NWithdrawals 3022800
    Cash1012800
    (being cash withdrawals )

2.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how company generates money or revenue for its working.   

To prepare: Ledger for the following transactions.

2.

Expert Solution
Check Mark

Answer to Problem 7GLP

Balance of cash ledger is $12665, account receivable $2250, office supplies $2000, office equipment $50900, salary $3600

Explanation of Solution

    Cash Account No.101
    DatePRDebitCreditBalance
    a.G16000060000
    b.G13000030000
    f.G1180028200
    g.G1800036200
    h.G163535565
    i.G1200033565
    j.G1203013265
    l.G1180011465
    m.400015465
    n.280012665
    Account receivableAccount no.106
    DatePRDebitCreditBalance
    k.G162506250
    MG140002250
    Office suppliesAccount no. 108
    DatePRDebitCreditBalance
    c.G120002000
    Office equipmentAccount no. 163
    DatePRDebitCreditBalance
    a.G12500025000
    e.G1560030600
    j.G12030050900
    AutomobileAccount no. 164
    DatePRDebitCreditBalance
    d.G11650016500
    BuildingAccount no. 170
    DatePRDebitCreditBalance
    b.G1160,000160,000
    LandAccount no. 172
    DatePRDebitCreditBalance
    b.G14000040000
    Account payable Account no. 201
    DatePRDebitCreditBalance
    c.G120002000
    e.56007600
    I20005600
    Note payableAccount no. 250
    DatePRDebitCreditBalance
    b.G1170000170000
    CapitalAccount no. 301
    DatePRDebitCreditBalance
    a.G18500085000
    d.G116500101500
    G1
    Withdrawals Account no. 302
    DatePRDebitCreditBalance
    n.G128002800
    Fees earnAccount no. 402
    DatePRDebitCreditBalance
    g. G180008000
    k.G1625014250
    Utilities ExpenseAccount no. 602
    DatePRDebitCreditBalance
    h.G1635635
    SalariesAccount no. 601
    DatePRDebitCreditBalance
    f.G118001800
    l.G118003600

3.

Summary Introduction

Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.   

To prepare: Trail balance.

3.

Expert Solution
Check Mark

Answer to Problem 7GLP

Total of trail balance is $291,350

Explanation of Solution

    Trail balance
    ParticularDr.Cr.
    Cash12665
    Account receivable2250
    Office supplies2000
    Land40,000
    Automobile 16,500
    Office equipment50,900
    Account payable5600
    Note Payable170,000
    Capital101,500
    Withdrawals2800
    Fees earn14,250
    Utilities635
    Salaries expense3600
    Total 291,350291,350

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Chapter 2 Solutions

Loose Leaf for Financial Accounting: Information for Decisions

Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Review the Apple balance sheet in Appendix A....Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Identify the items from the following list that...Ch. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - In a recent year’s financial statements, Home...Ch. 2 - Prob. 13QSCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Enter the number for the item that best completes...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prepare general journal entries for the following...Ch. 2 - Prob. 12ECh. 2 - Assume the following Taccounts reflect Belle Co.’s...Ch. 2 - Prob. 14ECh. 2 - A corporation had the following assets and...Ch. 2 - Prob. 16ECh. 2 - Use the information in Exercise 216 to prepare an...Ch. 2 - Prob. 18ECh. 2 - Compute the missing amount for each of the...Ch. 2 - Prob. 20ECh. 2 - You are told the column totals in a trial balance...Ch. 2 - a. Calculate the debt ratio and the return on...Ch. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 6PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Nuncio Consulting complete the following...Ch. 2 - Prob. 5PSBCh. 2 - Prob. 6PSBCh. 2 - Prob. 2SPCh. 2 - Prob. 1GLPCh. 2 - Prob. 2GLPCh. 2 - Prob. 3GLPCh. 2 - Prob. 4GLPCh. 2 - Prob. 5GLPCh. 2 - Prob. 6GLPCh. 2 - Prob. 7GLPCh. 2 - Using transactions from the following assignments,...Ch. 2 - Prob. 1FSACh. 2 - Prob. 2FSACh. 2 - Prob. 3FSACh. 2 - Assume that you are a cashier and your manager...Ch. 2 - Prob. 2BTNCh. 2 - Access EDGAR online (SEC.gov) and locate the 2016...Ch. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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