Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Huang Trucking Company was organized on January 1. At the end of the first quarter (three months) of operations, the owner prepared a summary

image text in transcribed

Huang Trucking Company was organized on January 1. At the end of the first quarter (three months) of operations, the owner prepared a summary of its activities as shown in the first row of the following tabulation: Required: 1. For each of the six transactions given in this tabulation, enter what you consider to be the correct amounts. The first transaction is illustrated. (Amounts to be deducted and losses/outflows should be indicated with a minus sign.) Computation of Summary of Transactions Income Cash a. Services performed for customers, $73,000, of which $13,000 remained uncollected at the end of the quarter. $ 73,000 $ 60,000 b. Cash borrowed from the local bank, $60,000 (one-year note). C. d. e. f. Small service truck purchased at the end of the quarter to be used in the business for two years starting the next quarter: cost, $11,200 cash. Wages earned by employees, $21,300, of which one-half remained unpaid at the end of the quarter. Service supplies purchased for use in the business, $4,390 cash, of which $2,200 were unused (still on hand) at the end of the quarter. Other operating expenses, $34,000, of which $7,100 remained unpaid at the end of the quarter. g. Based only on these transactions, compute the following for the quarter: Income (or loss) Cash inflow (or outflow)

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

Financial Accounting

Authors: Robert Libby, Patricia Libby, Daniel Short

8th edition

78025559, 978-0078025556

More Books

Students also viewed these Accounting questions

Question

Brief the importance of span of control and its concepts.

Answered: 1 week ago

Question

What is meant by decentralisation?

Answered: 1 week ago