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. a. c. The following information pertains to the next four questions. Northwestern Company entered into the following transactions during Year 4. The company was
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a. c. The following information pertains to the next four questions. Northwestern Company entered into the following transactions during Year 4. The company was started when it issued common stock for $8.000 cash. b. The company purchased equipment on January 1 that cost $5,800. The equipment had a four-year useful life and an $800 salvage value. Northwestern purchased $300 of supplies on account. d. Northwestern earned $6,200 of revenue on account. Cash collections of receivables was $5,500. f. On October 1, Year 4. Northwestern paid $1,200 in advance for a one-year insurance policy. Year-end Aidustuents: Supplies on hand as of December 31, Year 4, amounted to $100. h. Recognized insurance expense. i. Recognized depreciation expense. 2. a. The amount of depreciation expense reported on the Year 4 income statement would be $1.000. b. $1,250. $5,800. d. none of the above. c. 3. a. The supplies reported on the December 31 balance sheet would be $300. b. $100. $200. d. none of the above. C. a. The amount of insurance expense reported on the Year 4 income statement would be $300. b. $900. $1,200. d. none of the above. C. 5. a. b. C. d. The amount of cash flow from operating activities would be $(5.800). $4,300. $5,500. $6,500Step by Step Solution
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