Question
The following events were completed by Danas Imports in September 2018: Sept. 1 Acquired $54,000 cash from the issue of common stock. 1 Purchased $35,000
The following events were completed by Danas Imports in September 2018:
| Sept. | 1 | Acquired $54,000 cash from the issue of common stock. |
| 1 | Purchased $35,000 of merchandise on account with terms 2/10, n/30. | |
| 5 | Paid $1,000 cash for freight to obtain merchandise purchased on September 1. | |
| 8 | Sold merchandise that cost $12,500 to customers for $18,000 on account, with terms 2/10, n/30. | |
| 8 | Returned $1,100 of defective merchandise from the September 1 purchase to the supplier. | |
| 10 | Paid cash for the balance due on the merchandise purchased on September 1. | |
| 20 | Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period. | |
| 30 | Paid $3,450 cash for selling expenses. |
Required
-
Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example.
-
Prepare an income statement for the month ending September 30.
-
Prepare a statement of cash flows for the month ending September 30.
A.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B.
Prepare an income statement for the month ending September 30.
| ||||||||||||||||||||
C.
Prepare a statement of cash flows for the month ending September 30. (Enter cash outflows as negative amounts.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Research On Professional Responsibility And Ethics In Accounting Volume 24
Authors: Charles Richard Baker
1st Edition
180071758X, 9781800717589
