Question 65

Using the indirect method, calculate the amount of cash flows provided (used) by operating activities from the following data (in dollars): Net income 392,000; Beginning accounts receivable 54,000; Ending accounts receivable 43,000; Beginning prepaid expenses 8,000; Ending prepaid expenses 2,000; Beginning accounts payable 27,000; Ending accounts payable 17,000; Depreciation expense 46,000; Gain on disposal of equipment 5,000; Cash dividends of 38,000 were declared and paid to shareholders. If the amount represents cash flow used, enter the amount with a - sign e.g. -15000.

$_____

Question 57

On the adjusted trial balance of Orlando Corporation as at January 31, 2018, the following are some of the account balances (all normal balances): Supplies $740, Prepaid Insurance $1,620, Unearned Revenue $680, Salaries Payable $1,190, Supplies Expense $950, Service Revenue $2,030, Insurance Expense $540, Salaries Expense $1,740. Orlando's year-end is December 31 and its adjusting journal entries are recorded monthly. If $2,570 of salaries was paid in January, what was the balance in Salaries Payable at December 31, 2017?

$___

Question 52

Wrong Corp. receives a $7,000, 6-month, 4% note from Right Corp. in settlement of a past-due account receivable. What entry will Wrong Corp. make upon receiving the note?

Notes Receivable	7,140
Accounts Receivable.		7,140

Notes Receivable	7,000
Accounts Receivable.		7,000

Notes Receivable	7,000
Interest Receivable	140
Accounts Receivable.		7,000
Interest Revenue		140

Notes Receivable	7,140
Accounts Receivable.		7,000
Interest Revenue		140

Question 39

The collection of an account that had been previously written off under the allowance method for uncollectible accounts

increases net income in the period of collection.

involves a credit to Bad Debts Expense.

is recorded by debiting Cash and crediting Bad Debts Expense.

will usually require two journal entries.