The following transactions occurred for Dussault Ltd. 1. Annual interest of 8% is paid on $496,000...

Transcribed Image Text:

The following transactions occurred for Dussault Ltd. 1. Annual interest of 8% is paid on $496,000 of bonds payable that were issued last year. 2. A truck was purchased for $42.000 at the beginning of this year. The truck is being depreciated over five years at a rate of $8,400 per year, 3. Old equipment is sold for $49,000. The asset originally cost $159,000 and has accumulated depreciation of $125,000. 4. New equipment is purchased for $204,000. A cash payment of $51.000 is made and a long-term note payable for $153,000 is issued for the remainder. 5. A deposit of $2,500 is received in advance from a customer for goods to be delivered at a later date. 6. Income tax expense for the year is $85.000; $72,000 of this amount was paid during the year, and the remainder will be paid next year. For each of the above items: Identify the accounts affected and give the amounts by which they would be increased or decreased. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Current Attempt in Progress The following transactions occurred for Mouawad Inc. 1. Inventory costing $299,000 was purchased on account. 2 A new vehicle costing $39,000 was purchased. Mouawad paid $7,200 as a down payment, and the remaining $31,800 was financed through a bank loan. 3. Surplus land was sold for $80,000, which was $22.500 more than its original cost. 4. 5 During the year, the company made a payment of $20,000 on its mortgage payable; $2,500 of this amount was for the interest on the debt. Wages of $50,000 were charged to expense as they were incurred. No wages were owing to the employees at the end of the year. 6. The company declared and paid dividends of $33.500. For each of the above items: Identify the accounts affected and give the amounts by which they would be increased or decreased. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and Sales revenue $375,000 $576,000 $935,000 Cost of goods sold 235,000 330,000 646,000 Selling and administrative expenses 65,000 99,000 121,000 Depreciation expense 6.600 18,000 28,000 Interest expense 3,000 1,000 2,000 Income tax expense 18,000 35,000 45,000 Dividends paid 7,000 5,000 25,000 Increase/(Decrease) in Accounts receivable (2.500) 6,500 (9,400) Inventory 4,600 (8,000) 15,000 Property, plant, and equipment 50.000 (10,000) 60.000 Accounts payable 4.200 (7,300) 4,200 Interest payable (1,500) 1.300 (500) Income tax payable 2,500 (1.500) 6,500 Mortgage payable 20,000 (40,000) 10,000 Increase/(Decrease) in Accounts receivable (2,500) 6,500 (9,400) Inventory 4,600 (8,000) 15,000 Property, plant, and equipment 50,000 (10,000) 60,000 Accounts payable 4,200 (7,300) 4,200 Interest payable (1,500) 1,300 (500) Income tax payable 2,500 (1,500) 6,500 Mortgage payable 20,000 (40,000) 10,000 Common shares 30,000 (5.000) (80,000) For each of the above companies, calculate the cash flow from operations using the indirect method Cash Flow from Operations. NuVu Ltd. ABC Inc. Akht The following transactions occurred for Dussault Ltd. 1. Annual interest of 8% is paid on $496,000 of bonds payable that were issued last year. 2. A truck was purchased for $42.000 at the beginning of this year. The truck is being depreciated over five years at a rate of $8,400 per year, 3. Old equipment is sold for $49,000. The asset originally cost $159,000 and has accumulated depreciation of $125,000. 4. New equipment is purchased for $204,000. A cash payment of $51.000 is made and a long-term note payable for $153,000 is issued for the remainder. 5. A deposit of $2,500 is received in advance from a customer for goods to be delivered at a later date. 6. Income tax expense for the year is $85.000; $72,000 of this amount was paid during the year, and the remainder will be paid next year. For each of the above items: Identify the accounts affected and give the amounts by which they would be increased or decreased. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Current Attempt in Progress The following transactions occurred for Mouawad Inc. 1. Inventory costing $299,000 was purchased on account. 2 A new vehicle costing $39,000 was purchased. Mouawad paid $7,200 as a down payment, and the remaining $31,800 was financed through a bank loan. 3. Surplus land was sold for $80,000, which was $22.500 more than its original cost. 4. 5 During the year, the company made a payment of $20,000 on its mortgage payable; $2,500 of this amount was for the interest on the debt. Wages of $50,000 were charged to expense as they were incurred. No wages were owing to the employees at the end of the year. 6. The company declared and paid dividends of $33.500. For each of the above items: Identify the accounts affected and give the amounts by which they would be increased or decreased. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and Sales revenue $375,000 $576,000 $935,000 Cost of goods sold 235,000 330,000 646,000 Selling and administrative expenses 65,000 99,000 121,000 Depreciation expense 6.600 18,000 28,000 Interest expense 3,000 1,000 2,000 Income tax expense 18,000 35,000 45,000 Dividends paid 7,000 5,000 25,000 Increase/(Decrease) in Accounts receivable (2.500) 6,500 (9,400) Inventory 4,600 (8,000) 15,000 Property, plant, and equipment 50.000 (10,000) 60.000 Accounts payable 4.200 (7,300) 4,200 Interest payable (1,500) 1.300 (500) Income tax payable 2,500 (1.500) 6,500 Mortgage payable 20,000 (40,000) 10,000 Increase/(Decrease) in Accounts receivable (2,500) 6,500 (9,400) Inventory 4,600 (8,000) 15,000 Property, plant, and equipment 50,000 (10,000) 60,000 Accounts payable 4,200 (7,300) 4,200 Interest payable (1,500) 1,300 (500) Income tax payable 2,500 (1,500) 6,500 Mortgage payable 20,000 (40,000) 10,000 Common shares 30,000 (5.000) (80,000) For each of the above companies, calculate the cash flow from operations using the indirect method Cash Flow from Operations. NuVu Ltd. ABC Inc. Akht