Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

c. purchased equipment costing 96,375 by paying 25,000 cash and signing a long term note payable for the balance. d. borrowed 3,750 cash by signing

image text in transcribed

c. purchased equipment costing 96,375 by paying 25,000 cash and signing a long term note payable for the balance.

d. borrowed 3,750 cash by signing a short term note payable.

e. paid 31,375 cash to reduce the long term notes payable.

f. issued 2,500 shares of common stock for $18 cash per share.

g. declared and paid cash dividends of 62,125.

prepair a complete statement of cash flows using above pictures. report its operating activities using the indirent method. identify the debits and credits in the analysis of changes columns that correspond to following events:

a. net income was 73,750

b. accounts receivable increased

c. merchandize inventory increased.

d. prepaid expenses decreased.

e. accounts payable decreased.

f. depreciation expense was 18,750.

g. sold equipment costing 46,875, with accumulated depreciation of 28,125 for 13,625 cash. this yeilded a loss of 5,125

h. purchased equipment costing 96,375 by paying 25,000 cash and (i) by signing a long term note payable for the balance.

j. borrowed 3,750 cash by signing a short term note payable

k. paid 31,375 cash to reduce the long term notes payable.

l. issued 2,500 shares of common stock for $18 cash per share.

m. declared and paid cash dividends of 62,125

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_2

Step: 3

blur-text-image_3

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

Financial And Accounting Guide For Not-for-Profit Organizations

Authors: Malvern J. Gross, Richard F. Larkin, John H. McCarthy

6th Edition

0471250155, 978-0471250159

More Books

Students also viewed these Accounting questions