Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

View Policies Current Attempt in Progress For each of the following transactions, indicate how (i) net earnings and (ii) cash flows are affected. For

image text in transcribed

View Policies Current Attempt in Progress For each of the following transactions, indicate how (i) net earnings and (ii) cash flows are affected. For each transaction, enter the amount, (if any) as an increase or as a decrease. If there is no effect, enter "0". (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45). Do not leave any answer field blank. Enter O for amounts.) a. Took out a loan for $135,000. b. Purchased equipment for $95,000, paying $38,000 cash and financing the balance with a one-year note payable. c. Purchased $36,000 of inventory from suppliers on account. d. Paid $1.200 for advertising. e. Sold inventory for $42,300 to customers, on account. The goods sold had cost $12,900. f. Paid $22,000 on the accounts owing to suppliers. & Paid employee wages of $5.400. h. Received payments of $28.900 from customers on their accounts. i. Declared and paid dividends of $2.100. Made a loan payment of $3,000 on the loan from transaction (a), of which $2,000 was repayment of loan principal and $1,000 was interest. k. Recorded depreciation of $1,900 on the equipment purchased in transaction (b). L Recorded $285 in interest owing on the one-year note payable from transaction (b). Effect on Net Earnings Effect on Cash Flow $ $

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_2

Step: 3

blur-text-image_3

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

Cost Accounting A Managerial Emphasis

Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham

7th Canadian Edition

133138445, 978-0133926330, 133926338, 978-0133138443

More Books

Students also viewed these Accounting questions

Question

How does a business evaluate its strategic choices? AppendixLO1

Answered: 1 week ago

Question

Which innovations have you already accepted well?

Answered: 1 week ago

Question

Which innovations have you not yet tackled?

Answered: 1 week ago

Question

Which steps are still necessary to fully integrate the new?

Answered: 1 week ago