The following information was drawn from the records of Bennett Company: Common stock issued .................................................$ 5,000 Retained

Question:

The following information was drawn from the records of Bennett Company:

Common stock issued .................................................$ 5,000

Retained earnings (beginning) ...................................$15,000
Cash flow from investing activities ..........................(32,000)

Cash flow from financing activities ...............................2,000
Notes payable (ending) .................................................10,000

Accounts payable (ending) ..........................................17,000
Service revenue ............................................................42,000

Dividends ........................................................................3,000
Other operating expenses ...........................................20,000

Cash (ending) ................................................................23,000
Salary expense .............................................................10,000

Accounts receivable (ending) ......................................18,000
Interest payable (ending) ..............................................3,000

Interest expense ............................................................4,000
Common stock (beginning) .........................................40,000

Accrued salaries payable (ending) ...............................5,000
Cash flow from operating activities ...........................33,000

Land (ending) ...............................................................59,000
Cash (beginning) ..........................................................20,000

Cash collected from accounts receivable .................65,000

Required
a. Use the appropriate accounts and balances from Bennett Company to construct an end of period income statement, a statement of changes in stockholders’ equity, a balance sheet, and a statement of cash flows (show only totals for each activity on the statement of cash flows).

b. Assume all revenue was recognized on account. Determine the beginning accounts receivable balance.

c. Assume the accounts payable account is associated with other operating expenses and that all other operating expenses are incurred on account. Determine the beginning accounts payable balance.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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