Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Additional Information a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash. b. The only changes affecting retained

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Additional Information a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $65,000 cash. d. Received cash for the sale of equipment that had cost $54,000, yielding a $2,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Prepare the Statement of Cash flows for the year ended June 30, 2021 using the Direct Method. Hint Use the Cash Taccount on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Post-closing STREAMLINE INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities: Direct Mothod Journal entry worksheet (1) 2 7. 8 13 Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. values. Post-closing \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ STREAMLINE INCORPORATED } \\ \hline \multicolumn{3}{|c|}{ Statement of Cash Flows (Direct Method) } \\ \hline \multicolumn{3}{|c|}{ For Year Ended June 30, 2021} \\ \hline \multicolumn{3}{|c|}{ Cash flows from operating activities: } \\ \hline Cash received from customers & 756,000 & \\ \hline Cash paid for merchandise & (453,000) & \\ \hline Cash paid for operating expenses & (82,800) & \\ \hline Cash paid for income taxes & (50,360) & \\ \hline & & \\ \hline Net cash provided by operating activities & & 169,840 \\ \hline \multicolumn{3}{|l|}{ Cash flows from investing activities: } \\ \hline \multicolumn{3}{|l|}{ Cash received from sale of equipment } \\ \hline \multicolumn{3}{|l|}{ Cash paid for equipment } \\ \hline & & \\ \hline \multicolumn{3}{|l|}{ Net cash used by investing activities } \\ \hline \multicolumn{3}{|l|}{ Cash flows from financing activities: } \\ \hline \multicolumn{3}{|l|}{ Cash received from stock issuance } \\ \hline Cash paid to retire notes & (32,000) & \\ \hline \multicolumn{3}{|l|}{ Cash paid for dividends } \\ \hline Net cash used by financing activities & & (32,000) \\ \hline Net increase in cash & & 137,840 \\ \hline \multicolumn{3}{|l|}{ Cash balance at prior year-end } \\ \hline & & \\ \hline \end{tabular} Use the following financial statements and additional information. Journal entry worksheet Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles And Practice

Authors: Kumar And Sharma

3rd Edition

8120350987, 9788120350984

More Books

Students also viewed these Accounting questions