Bocarex Poultry Company was organized on January 1, 2010. At the end of the first quarter (three months) of operations, the owner prepared a summary of its activities as shown in the first row of the following tabulation:

Required:
1. For each of the six transactions given in this tabulation, enter what you consider the correct amounts. Enter a zero when appropriate. The first transaction is illustrated.
2. For each transaction, explain the basis for your dollar responses.

Transcribed Image Text:

Computation of Cash Summary of Transactions a. Services performed for customers, $75,000, of which $15,000 b. Cash borrowed from the local bank, $30,000 (one-year note). c. Small service truck purchased at the end of the quarter to be Income remained uncollected at the end of the quarter. +$75,000$60,000 used in the business for two years starting the next quarter: cost, $8,000 cash. d. Wages earned by employees, $36,000, of which one-sixth remained unpaid at the end of the quarter. e. Service supplies purchased for use in the business, $4,000 cash, of which $1,000 were unused (still on hand) at the end of the quarter. Other operating expenses, $27.000, of which one-half remained unpaid at the end of the quarter. f. Based only on these transactions, compute the following for the quarter: Income (or loss) Cash inflow (or outflow