Question
Purchases and Sales of Merchandise, Cash Flows Pedal City, a bike shop, opened for business on April 1. It uses a periodic inventory system. The
Purchases and Sales of Merchandise, Cash Flows
Pedal City, a bike shop, opened for business on April 1. It uses a periodic inventory system. The following transactions occurred during the first month of business:
Required:
For all accounting equations, if a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "0". If the effect is negative, use the minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item.
1. Identify and analyze each of the following transactions of Pedal City.
April 1: Purchased five units from Giorgio, Inc. for $400 total, with terms 3/10, n/30, FOB destination.
| Activity | Operating |
| Accounts | Account Payable Increase, Purchases Increase |
| Statement(s) | Balance Sheet and Income Statement |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| fill in the blank 964add0c9fe8fae_2 | fill in the blank 964add0c9fe8fae_4 | fill in the blank 964add0c9fe8fae_5 | fill in the blank 964add0c9fe8fae_7 | fill in the blank 964add0c9fe8fae_9 | fill in the blank 964add0c9fe8fae_10 | |||||||||
April 10: Paid for the April 1 purchase.
| Activity | Operating |
| Accounts | Cash Decrease, Account Payable Decrease |
| Statement(s) | Balance Sheet and Income Statement |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| fill in the blank b986e60bfffb058_2 | fill in the blank b986e60bfffb058_4 | fill in the blank b986e60bfffb058_5 | fill in the blank b986e60bfffb058_7 | fill in the blank b986e60bfffb058_9 | fill in the blank b986e60bfffb058_10 | |||||||||
April 15: Sold one unit for $200 cash.
| Activity | Operating |
| Accounts | Cash Increase, Sales Revenue Increase |
| Statement(s) | Balance Sheet and Income Statement |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| fill in the blank 23916ef95fa0fe8_2 | fill in the blank 23916ef95fa0fe8_4 | fill in the blank 23916ef95fa0fe8_5 | fill in the blank 23916ef95fa0fe8_7 | fill in the blank 23916ef95fa0fe8_9 | fill in the blank 23916ef95fa0fe8_10 | |||||||||
April 18: Purchased ten units from Bush Enterprises for $900 total, with terms 3/10, n/30, FOB destination.
| Activity | |
| Accounts | |
| Statement(s) |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| fill in the blank 4e7d0dfd1fc9f85_2 | fill in the blank 4e7d0dfd1fc9f85_4 | fill in the blank 4e7d0dfd1fc9f85_5 | fill in the blank 4e7d0dfd1fc9f85_7 | fill in the blank 4e7d0dfd1fc9f85_9 | fill in the blank 4e7d0dfd1fc9f85_10 | |||||||||
April 25: Sold three units for $200 each, cash.
| Activity | |
| Accounts | |
| Statement(s) |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| fill in the blank 2a9071f9af8bffc_2 | fill in the blank 2a9071f9af8bffc_4 | fill in the blank 2a9071f9af8bffc_5 | fill in the blank 2a9071f9af8bffc_7 | fill in the blank 2a9071f9af8bffc_9 | fill in the blank 2a9071f9af8bffc_10 | |||||||||
April 28: Paid for the April 18 purchase.
| Activity | |
| Accounts | |
| Statement(s) |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| fill in the blank 6031def28075066_2 | fill in the blank 6031def28075066_4 | fill in the blank 6031def28075066_5 | fill in the blank 6031def28075066_7 | fill in the blank 6031def28075066_9 | fill in the blank 6031def28075066_10 | |||||||||
2. Determine net income for the month of April. Pedal City incurred and paid $100 for rent and $50 for miscellaneous expenses during April. Ending inventory is $967. (Ignore income taxes.) $fill in the blank 4be4dbfecfa4fe6_1
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 out flows, a decrease in cash or cash payments.
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Healthcare Financial Management Applied Concepts And Practical Analyses
Authors: Cassandra R. Henson
1st Edition
0826144748, 978-0826144744
