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need help im not sure how is the red mark still wrong and I trying time i still dont understand Malco Enterprises issued $14,000 of
need help
im not sure how is the red mark still wrong and I trying time i still dont understand
Malco Enterprises issued $14,000 of common stock when the company was started. In addition, Maico borrowed $44,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized. $76,500 of revenue on account in Year 1 and $90,000 of revenue on account in Year 2 . Cash collections of accounts receivabie were $62,900 in Year 1 and $73,100 in Year 2. Malco paid $43,000 of other operating expenses in Year 1 and $49,000 of other operating expenses in Year 2 Malco repaid the loan and interest at the maturity date. Required a. Organize the information in accounts under an accounting equation. b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? c. What amount of Interest expense would be reported on the Year 1 income statement? d. What amount of total liabilities would be reported on the December 31, Year 1, balance sheet? e. What amount of retained earnings would be reported on the December 31 , Year 1 , balance sheet? f. What amount of cash flow from financing activities would be reported on the Year 1 statement of cash fows? 9. What amount of interest expense would be reported on the Year 2 income statement? h. What amount of cash flows from operating activities would be reported on the Year 2 cash flow statement? i. What amount of assets would be feported on the December 31, Year 2, baiance sheet? Complete this question by entering your answers in the tabs below. Organize the information in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells will require entry. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{12}{|c|}{ Eifect of Events on the Accounting Equation } \\ \hline \multicolumn{12}{|c|}{ Year 1 and Year 2} \\ \hline \multirow[b]{2}{*}{ Event } & \multicolumn{3}{|c|}{ Assets } & \multirow[b]{2}{*}{m} & \multicolumn{3}{|c|}{ Liabilities } & \multirow[b]{2}{*}{+} & \multicolumn{3}{|c|}{ Stockholders' Equity } \\ \hline & Cash & + & \begin{tabular}{l} Accounts \\ Recelvable \end{tabular} & & \begin{tabular}{l} Notes \\ Payable \end{tabular} & + & \begin{tabular}{l} Interest \\ Payable \end{tabular} & & \begin{tabular}{l} Common \\ Stock \end{tabular} & + & \begin{tabular}{l} Retained \\ Earnings \end{tabular} \\ \hline \multicolumn{12}{|l|}{ Year 1} \\ \hline 1. & 14,000 & + & & = & & + & & + & 14,000 & + & 00 \\ \hline 2. & 44,0000 & + & & = & 44,000 & + & & + & & + & 00 \\ \hline 3. & & + & 76.500 & = & & + & & + & & + & 76,500 \\ \hline 4. & 62,900 & + & (62,900) & = & & + & & + & & + & 00 \\ \hline 5. & (43,000) & + & & = & & + & & + & & + & 4(43,000)0 \\ \hline 6. & & + & & = & & + & 1,3200 & + & & + & (1,320)0 \\ \hline Ending balance & 77,900 & + & 13,600 & = & 44,000 & + & 1,320 & + & 14,000 & + & 32,180 \\ \hline \multicolumn{12}{|l|}{ Year 2} \\ \hline Beginning balance & & + & & = & & + & & + & & + & \\ \hline 1. & 00 & + & 90,000 & = & & + & & + & & + & 90,000 \\ \hline 2. & 73,1000 & + & (73,100) & & & + & & + & & + & 00 \\ \hline 3. & (49,000) & + & & = & & + & & + & & + & (49,000)0 \\ \hline 4. & (2,640) & + & & = & & + & (1,320) & + & & + & (1,320)0 \\ \hline 5. & (44,000)X & + & & = & (44,000) & + & & + & & + & 00 \\ \hline Ending balance & (22,540) & + & 16,900 & = & (44,000) & + & (1,320) & + & 0 & + & 39,680 \\ \hline \end{tabular} Step by Step Solution
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