Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Received $41,500 cash from the issue of a short-term note
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:
- Received $41,500 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1.
- Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent.
- Paid $72,000 cash for other operating expenses during the year.
- Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2.
- Recognized the accrued interest at December 31, Year 1.
a. Prepare a statement of cash flows for Year 1.
b. Prepare the closing entries.
- Record the closing entry for service revenue.
- Record the closing entry for expenses.
c.Prepare a post-closing trial balance.
Prepare a statement of cash flows for Year 1. (Enter cash outfl WALNUT ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 1 \begin{tabular}{|l|l|l|} \hline Cash flows from operating activities: & & \\ \hline \multicolumn{1}{|c|}{ Inflow from customers } & & \\ \hline Outflow for expenses & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from operating activities & & \\ \hline Cash flows from investing activities & & \\ \hline Cash flows from financing activities: & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from financing activities & & \\ \hline Net change in cash & & \\ \hline & & \\ \hline Ending cash balance & & \\ \hline \hline \end{tabular} e. Prepare a post-closing trial balanceStep 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