Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For each of the following transactions, what would be the effect on Pretax Income, Total Assets (including cash) and Cash from Operations in 2019 (year

For each of the following transactions, what would be the effect on Pretax Income, Total Assets (including cash) and Cash from Operations in 2019 (year ended September 30, 2019). For example, if the problem said, Buy $100 of inventory for cash during 2019, the answer would be:

Pretax Income 0 total Assets 0 Cash from Operations -100

image text in transcribed

Buy $100 of inventory on credit during 2019. Prepay $100 of advertising during 2019. Ads will run in 2020. Sell a piece of equipment for cash of $100 in 2019. The equipment was 3 years through a 4. year estimated useful life and originally cost Hillenbrand $500. Run $100 of ads during 2019. The ads will be paid for in 2020. Incur and pay $100 of interest on long-term debt during 2019, Pay $100 of dividends during 2019. 7. Sell $100 of inventory on credit during 2019. The inventory was purchased for cash of $60 during 2018. The buyer will pay for the purchase in 2020. 8. Sign a contract to buy $100 of inventory. Inventory will be received in 2020 and payment will be made in 2020. 9. Issue stock in a public offering to investors and receive $100 of cash during 2019. 10. Purchase a piece of equipment during 2019 for $100 in cash. Put the piece of equipment into service during 2019 and record $10 of depreciation during 2019. (Your answer should include the effect of both the purchase and the depreciation). Transaction Pretax Income Total Assets Cash from Operations Example -100

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

Accounting for Non-Accounting Students

Authors: John R. Dyson

8th Edition

273722972, 978-0273722977

More Books

Students also viewed these Accounting questions

Question

What will be the timescale?

Answered: 1 week ago