Income Statement Assets Liabilities Stockholders Equity Revenues Expenses Cash 873 Accounts Payable -873 No Entry No Entry Balance Sheet How does this entry affect the accounting equation? Determine net income for the month of April. Cycletme incurred and paid $100 for rent and $50 for miscelaneous expenses during April. Ending inventory in 1967. (Ignore income) 259 3. Assuming that these are the only transactions during April (including rent and miscellaneous expenses), compute net cash flow from operating activities. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. -558 X 4. Cash outflow during the first month of business is much larger than expenses as shown on the income statement due to Baxments for acquisition of inventory which was unsold at the end of the month Check My W 2) You will need to determine Cast of Goods Sold seperately using inventory, and purchases accounts 3) Look for all CASH infiows for operating activities. Then identify at CASH payments for operating activities and net the two em Check My Work 1 more Check My Working All work saved 0 e 0 P Next Emal instructor Save and fa Submit Assignment for Grading Chapter 6 Homework Enter air amounts rounded to the nearest cent 1. Determine the balance on the books before any adjustments as well as the corrected balance to be reported the balance sheet. Racine Rentals Bank Reconciliation March 31 6,506.10 423 Balance per bank statement, March 31 Add: Deposit in transit Deduct: Outstanding checks: No. 112 No. 117 No. 120 No. 122 Bank error Adjusted balance, March 31 Balance per books, March 31 42.92 307.00 10.58 77.56 438.06 45 444.22 6.484.88 00000 Adjusted balance, March 31 1 2. What should Racine, the owner of Racine Rentals, do as a result of the bank error and why? a. It is illegal for her to not tell the bank about the error and she could face jail time and penalties. b. It is unethical for her not to tell the bank and payee about the error and to pay the amount owed. c. Since the bank made the error, the bank has to absorb the cash they did not charge her account for d. It is neither illegal nor unethical to wait to see if the bank catches its error. Check My Work 3 more Check My Work uses remaining. Assignment Score: 0.0% All we Email Instructor Save and Exit Submit Assignment for Gr HOLO