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AVAILABLE ACCOUNTS FOR THIS ASSIGNMENT. PLEASE USE THESE ACCOUNTS. The income statement and a schedule reconciling cash flows from operating activities to net income are
AVAILABLE ACCOUNTS FOR THIS ASSIGNMENT. PLEASE USE THESE ACCOUNTS.
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. $150.20 (90.10) 60.10 MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Salaries expense $20.20 Insurance expense 12.20 Depreciation expense 5.10 Interest expense Gains and losses: Gain on sale of equipment Loss on sale of land Income before tax Income tax expense Net income 6.10 (43.60) 12.20 (3.20) 25.50 (12.75) $ 12.75 $ 12.75 Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income Adjustments for noncash effects: Decrease in accounts receivable Gain on sale of equipment Increase in inventory Increase in accounts payable Increase in salaries payable Depreciation expense Decrease in bond discount Decrease in prepaid insurance Loss on sale of land Increase in income tax payable Net cash flows from operating activities 5.10 (12.20) (6.10) 9.10 3.10 5.10 3.95 2.10 3.20 6.10 $ 31.30 Required: 1. Provide the summary journal entries which shows the cash flow for each of the following for Mike Roe Computers during the reporting period: (a) received from customers, (b) paid to suppliers, (c) paid to employees, (d) paid for interest, (e) paid for insurance, (f) paid for income taxes. Journal entry worksheet B D E > Record the summary journal entry showing cash received from customers during the reporting period. Note: Enter debits before credits. Event General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet Record the summary journal entry showing cash paid to suppliers of goods during the reporting period. Note: Enter debits before credits. Event General Journal Debit Credit b. Record entry Clear entry View general journal Journal entry worksheet A B D E F Record the summary journal entry showing cash paid to employees during the reporting period. Note: Enter debits before credits. Event General Journal Debit Credit C. Record entry Clear entry View general journal Journal entry worksheet Record the summary journal entry showing cash paid for insurance during the reporting period. Note: Enter debits before credits. Event General Journal Debit Credit e. Record entry Clear entry View general journal Journal entry worksheet Record the summary journal entry showing cash paid for income taxes during the reporting period. Note: Enter debits before credits. Event General Journal Debit Credit f. Record entry Clear entry View general journal No journal entry required Accounts payable Accounts receivable Accrued liabilities Accumulated depreciation Allowance for uncollectible accounts Bad debt expense I Bonds payable Cash Common stock Cost of goods sold Depreciation expense 1 Discount on bonds payable Dividends Dividends payable Equipment Gain on sale of investments Income tax expense 1 Income tax payable el Insurance expense Interest expense Interest payable Inventory Land Long-term investment Mlatas Notes payable Paid-in capital - excess of par Patent Preferred stock Prepaid insurance Retained earnings Salaries expense Salaries payable Sales revenue Treasury stock
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