Question
Need help as soon as possible! Thank you Chegg! 1a: The following accounts and corresponding balances were drawn from Jessy Companys Year 2 and Year
Need help as soon as possible! Thank you Chegg!
1a:
The following accounts and corresponding balances were drawn from Jessy Companys Year 2 and Year 1 year-end balance sheets.
Account Title | Year 2 | Year 1 | ||||
Unearned revenue | $ | 6,950 | $ | 3,400 | ||
Prepaid rent | 1,800 | 2,610 | ||||
During the year, $75,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $34,500.
Required Prepare the operating activities section of the statement of cash flows assuming the direct approach is used. (Cash outflows should be indicated with minus sign.)
1b:
Jessy Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Jessy's Year 2 and Year 1 year-end balance sheets.
Account Title | Year 2 | Year 1 | ||||
Accounts receivable | $ | 31,044 | $ | 37,253 | ||
Prepaid rent | 1,379 | 1,207 | ||||
Interest receivable | 548 | 438 | ||||
Accounts payable | 9,484 | 11,381 | ||||
Salaries payable | 2,901 | 3,315 | ||||
Unearned revenue | 2,747 | 3,662 | ||||
The income statement reported a $1,380 gain on the sale of equipment, an $690 loss on the sale of land, and $3,700 of depreciation expense. Net income for the period was $52,002.
Required Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with minus sign.)
1c:
Jessy Company., recognized $8,900 of sales revenue on account and collected $5,500 of cash from accounts receivable. Further, Jessy recognized $4,300 of operating expenses on account and paid $2,400 cash as partial settlement of accounts payable.
Required
-
Prepare the operating activities section of the statement of cash flows under the direct method.
-
Prepare the operating activities section of the statement of cash flows under the indirect method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started