Purchases and Sales of Merchandise, Cash Flows Two Wheeler, 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 Two Wheeler. April 1: Purchased five units from Duhan Co. for $400 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' Assets Liabilities + Equity Revenues Exper April 10: Paid for the April 1 purchase. Activity Accounts Statement(s) Income Statement Net Revenues Expenses = Income How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Expe April 15: Sold one unit for $200 cash. Activity Accounts Statement(s) Income Statement Net Revenues Expenses Income How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' + Assets Liabilities + Equity Revenues Expo April 18: Purchased ten units from Clinton Inc. for $900 total, with terms 3/10, n/30, FOB destination. Activity Accounts Statement(s) Income Statement Net Revenues Expenses = Income ation. How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Exper April 25: Sold three units for $200 each, cash. Activity Accounts Statement(s) How does this entry affect the accounting equation? Income Statement Net Revenues Expenses = Income How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expe April 28: Paid for the April 18 purchase. Activity Accounts Statement(s) Income Statement Net Revenues Expenses = Income How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Exper 2. Determine net income for the month of April. Two Wheeler incurred and paid $100 for rent and $50 for miscellaneous expenses during April. Ending inventory is $967. (Ignore income taxes.) 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. 4. Cash outflow during the first month of business is much larger than expenses as shown on the income statement due to Income Statement Net Revenues Expenses Income nd $50 for miscellaneous expenses during April. Ending inventory is $967. (Ignore income expenses), compute net cash flow from operating activities. Use the minus sign to indicate e income statement due to Purchases and Sales of Merchandise, Cash Flows Two Wheeler, 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 Two Wheeler. April 1: Purchased five units from Duhan Co. for $400 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' Assets Liabilities + Equity Revenues Exper April 10: Paid for the April 1 purchase. Activity Accounts Statement(s) Income Statement Net Revenues Expenses = Income How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Expe April 15: Sold one unit for $200 cash. Activity Accounts Statement(s) Income Statement Net Revenues Expenses Income How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' + Assets Liabilities + Equity Revenues Expo April 18: Purchased ten units from Clinton Inc. for $900 total, with terms 3/10, n/30, FOB destination. Activity Accounts Statement(s) Income Statement Net Revenues Expenses = Income ation. How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Exper April 25: Sold three units for $200 each, cash. Activity Accounts Statement(s) How does this entry affect the accounting equation? Income Statement Net Revenues Expenses = Income How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expe April 28: Paid for the April 18 purchase. Activity Accounts Statement(s) Income Statement Net Revenues Expenses = Income How does this entry affect the accounting equation? Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Exper 2. Determine net income for the month of April. Two Wheeler incurred and paid $100 for rent and $50 for miscellaneous expenses during April. Ending inventory is $967. (Ignore income taxes.) 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. 4. Cash outflow during the first month of business is much larger than expenses as shown on the income statement due to Income Statement Net Revenues Expenses Income nd $50 for miscellaneous expenses during April. Ending inventory is $967. (Ignore income expenses), compute net cash flow from operating activities. Use the minus sign to indicate e income statement due to
