Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 of 4 -/5 amount, trany as an increase or as a decrease. If there is no erect, enter u tercer negative amounts using

image text in transcribed
Question 3 of 4 -/5 amount, trany as an increase or as a decrease. If there is no erect, enter u tercer negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any fields blank.) Effect on Cash Flow Effect on Net Earnings $ $ a. Took out a loan for $124,000. b. Purchased equipment for $97,000, paying $38,800 cash and financing the balance with a one-year note payable. c. Purchased $32,000 of inventory from suppliers on account. d. Paid $1,200 for advertising. e. Sold inventory for $37,500 to customers, on account. The goods sold had cost $11,100. Paid $20,000 on the accounts owing to suppliers. Paid employee wages of $5,200. f. 8 h. Received payments of $25,500 from customers on their accounts. i. Declared and paid dividends of $1.900. i. Made a loan payment of $2,800 on the loan from transaction (a), of which $1,800 was repayment of loan principal and $1.000 was interest. k. Recorded depreciation of $1.940 on the equipment purchased in transaction (b). 1. Recorded $291 in interest owing on the one-year note payable from transaction (b). $

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

Observation And Audit Techniques For Measuring Retail Sales

Authors: Earl E. Houseman

1st Edition

0428139841, 978-0428139841

More Books

Students also viewed these Accounting questions