Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just help filling in the Statement of Cash Flows. I may be missing detailed items, such as account/transactions names (under the activites listed). Other charts

Just help filling in the Statement of Cash Flows. I may be missing detailed items, such as account/transactions names (under the activites listed).

Other charts listed below the Statement of Cash Flows are correct. Placed them for infomation.

MIXON CO.
Statement of Cash Flows
For the Year Ended December 31
2014 2015 2016
Cash flows from operating activities
Inflow from rental $28,885 $28,885 28,885
Outflow for interest (3,270) (2,243) (1,154)
Net cash flow from operating activities 25,615 26,642 27,731
Cash flows from investing activities
Outflow to purchase land
Net cash flows from investing activities 0 0 0
Cash flows from financing activities
Outflow to repay loan
Net cash flows from financing activities 0 0 0
Net change in cash 25,615 26,642 27,731
Plus: Beginning cash balance
Ending cash balance $25,615 $26,642 27,731

Correct Info. below

MIXON CO.
Balance Sheet
As of December 31
2014 2015 2016
Assets
Cash $8,496 $16,992 $25,488
Land 54,500 54,500 54,500
Total assets $62,996 $71,492 79,988
Liabilities
Notes payable $37,381 $19,235 $0
Total liabilities 37,381 19,235 0
Stockholders' Equity
Retained earnings 25,615 52,257 79,988
Total stockholders' equity 25,615 52,257 79,988
Total liabilities and stockholders' equity $62,996 $71,492 $79,988
MIXON CO.
Income Statement
For the Year Ended December 31
2014 2015 2016
Rent revenue $28,885 $28,885 $28,885
Interest expense (3,270) (2,243) (1,154)
Net income $25,615 $26,642 $27,731

MIXON CO.
Effect of Events on the Accounting Equation
2014, 2015 and 2016
Date Assets = Liabilities + Stockholders' Equity Accounts Titles for Retained Earnings
Cash + Land = Notes Payable + Retained Earnings
2014
1/1 54,500 + 0 = 54,500 + 0 NA
1/1 (54,500) + 54,500 = 0 + 0 NA
12/31 (20,389) + 0 = (17,119) + (3,270) Interest expense
12/31 28,885 + 0 = 0 + 28,885 Rent revenue
Bal. 8,496 + 54,500 = 37,381 + 25,615
2015
Beg. bal. 8,496 + 54,500 = 37,381 + 25,615
12/31 (20,389) + 0 = (18,146) + (2,243) Interest expense
12/31 28,885 + 0 = 0 + 28,885 Rent revenue
End. bal. 16,992 + 54,500 = 19,235 + 52,257
2016
Beg. bal. 16,992 + 54,500 = 19,235 + 52,257
12/31 (20,389) + 0 = (19,235) + (1,154) Interest expense
12/31 28,885 + 0 = 0 + 28,885 Rent revenue
End. bal. 25,488 + 54,500 = 0 + 79,988

MIXON CO.
Amortization Schedule
Year Principal Balance on January 1 Cash Payments December 31 Applied to Interest Applied to Principal Principal Balance End of Period
2014 $54,500 $20,389 $3,270 $17,119 $37,381
2015 37,381 20,389 2,243 18,146 19,235
2016 19,235 20,389 1,154 19,235 0

On January 1, 2014, Mixon Co. borrowed cash from First City Bank by issuing a $54,500 face value, three-year term note that had a 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $20,389 that include both interest and principal on December 31 of each year. Mixon used the proceeds from the loan to purchase land that generated rental revenues of $28,885 cash per year.

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

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions

Question

305 mg of C6H12O6 in 55.2 mL of solution whats the molarity

Answered: 1 week ago

Question

6. How do histories influence the process of identity formation?

Answered: 1 week ago