Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2018, Lee Inc. billed its customers $62,000 for services performed. The company collected $51,000 of the amount billed. Lee incurred $39,000 of other operating

image text in transcribed
image text in transcribed
image text in transcribed
In 2018, Lee Inc. billed its customers $62,000 for services performed. The company collected $51,000 of the amount billed. Lee incurred $39,000 of other operating expenses on account. Lee paid $31,000 of the accounts payable. Lee acquired $40,000 cash from the issue of common stock. The company invested $21,000 cash in the purchase of land. Required (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions. Use the preceding Information to answer the following questions: a. What amount of revenue will Lee report on the 2018 Income statement? b. What amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? e. What is the amount of net cash flow from investing activities? f. What is the amount of net cash flow from financing activities? g. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet? Accounting Equation Reg A to H Record the effects of each accounting event under the appropriate general ledger account headings. (Enter any decreases to acc minus sign.) LEE INC. Effect of Events on the General Ledger Accounts Assets - Liabilities Cash Accounts Land Accounts Receivable Payable + Event Stockholders' Equity Common Retained Stock Earnings 1. Sales on account 2. Collected accounts receivable 3. Incurred expense 4. Paid accounts payable 5. Issue of stock 6. Purchase land Totals Reg A to > al Acct 6 Accounting Equation Req A to H What is the revenue, cash flow from revenue, net income, net cas investing activities, net cash flow from financing activities, total as outflows as negative amounts.) Amount a. To Revenue recognized Cash flow from revenue Net income Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Total assets Total liabilities Total equity

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 Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

10th Edition

1260481352, 978-1260481358

More Books

Students also viewed these Accounting questions

Question

=+What is the nature of their impact?

Answered: 1 week ago

Question

=+Is it possible to operate union-free?

Answered: 1 week ago

Question

=+impact member states and MNEs?

Answered: 1 week ago