Question

Below are several transactions for Meyers Corporation for 2018. a. Issue common stock for cash, $44,000....

Below are several transactions for Meyers Corporation for 2018.


a. Issue common stock for cash, $44,000.
b. Purchase building and land with cash, $29,000.
c. Provide services to customers on account, $6,400.
d. Pay utilities on building, $700.
e. Collect $4,400 on account from customers.
f. Pay employee salaries, $8,400.
g. Pay dividends to stockholders, $3,400.


Required:

1. For each transaction, determine the amount of cash flows. If cash is involved in the transaction, indicate whether Meyers should classify it as operating, investing, or financing in a statement of cash flows. (Enter N/A if the question is not applicable to the statement. List cash outflows as negative amounts.)

Transaction Cash Flows Operating,Investing or Financing
Issue common stock for cash.
Purchase building and land with cash.
Provide services to customers on account.
Pay utilities on building.
Collect cash from customer on account.
Pay employee salaries.
Pay dividends to stockholders

2. Calculate net cash flows for the year. (List cash outflows as negative amounts.)

Net cash flows for the year =

3. Assuming the balance of cash on January 1, 2018, equals $3,800, calculate the balance of cash on December 31, 2018.

Cash balance
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1)

Transaction cash flow Operating,Investing or Financing
a 44000 Financing activity
b (29000) Investing activity
c NA credit transaction
d (700) operating activity
e 4400 operating activity
f (8400) operating activity
g (3400) financing activity

2)Net cash flow = 44000-29000-700+4400-8400-3400=6900

3)balance of cash on December 31, 2018. = beginning cash+ net cash flow for year

                      = 3800+6900 = 10700

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company had the following transactions during the year: Paid rent for the next two years,...
A company had the following transactions during the year: Paid rent for the next two years, $8,500. Purchased office supplies on account, $2,700. Purchased equipment, paying $14,000 cash and issuing a note payable for $7,000. Borrowed from the bank, $7,000. Paid employee salaries, $7,900. Paid $1,500 on account related to transaction 2 above. Paid dividends to stockholders, $3,000. Sold land for $10,900 that was purchased in a prior year for $7,700. Collected cash from customers for services provided, $25,800. Calculate...
In preparation for developing its statement of cash flows for the year ended December 31, 2018,...
In preparation for developing its statement of cash flows for the year ended December 31, 2018, Rapid Pac, Inc., collected the following information: ($ in millions) Fair value of shares issued in a stock dividend $ 60.0 Payment for the early extinguishment of long-term bonds (book value: $79.0 million) 84.0 Proceeds from the sale of treasury stock (cost: $15.0million) 20.0 Gain on sale of land 2.4 Proceeds from sale of land 7.2 Purchase of Microsoft common stock 138.0 Declaration of...
1. For each transaction, indicate whether a company would classify the related account as an asset,...
1. For each transaction, indicate whether a company would classify the related account as an asset, liability, stockholders' equity, dividend, revenue, or expense. Transactions Related Accounts Account Classification 1. Receive cash from investors. Common Stock 2. Pay rent for the current period. Rent Expense 3. Purchase office equipment. Equipment 4. Pay cash to stockholders. Dividends 5. Provide services to customers. Service Revenue 2. Account classifications include assets, liabilities, stockholders' equity, dividends, revenues, and expenses. Indicate the account classification for each...
Required information [The following information applies to the questions displayed below.] Peter loves dogs and cats....
Required information [The following information applies to the questions displayed below.] Peter loves dogs and cats. For the past several years, he has owned and operated Homeward Bound, which temporarily houses pets while their owners go on vacation. For the month of June, the company has the following transactions: 1. June 2 Obtain cash by borrowing $19,000 from the bank by signing a note. 2. June 3 Pay rent for the current month, $1,200. 3. June 7 Provide services to...
Cash Dividends The date of declaration, date of record, and date of payment in connection with...
Cash Dividends The date of declaration, date of record, and date of payment in connection with a cash dividend of $1,200,000 on a corporation’s common stock are June 1, July 15, and August 14, respectively. Illustrate the effects on the accounts and financial statements for June 1. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of...
Issued $26,000 of common stock for cash. Provided $95,600 of services on account. Provided $52,000 of...
Issued $26,000 of common stock for cash. Provided $95,600 of services on account. Provided $52,000 of services and received cash. Collected $85,000 cash from accounts receivable. Paid $54,000 of salaries expense for the year. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible. Closed the revenue account. Closed the expense account. Year 2: Wrote off an uncollectible account for $750. Provided $104,000 of...
Statement of Cash Flows Colorado Corporation was organized at the beginning of the year, with the...
Statement of Cash Flows Colorado Corporation was organized at the beginning of the year, with the investment of $256,500 in cash by its stockholders. The company immediately purchased an office building for $309,100, paying $216,500 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,200 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $94,870 from its customers. It paid $66,100...
n inexperienced accountant for Prestwick Company prepared the following income statement for the month of August,...
n inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year. PRESTWICK COMPANY AUGUST 31, CURRENT YEAR Revenues: Services provided to customers $ 13,000 Investment by stockholders 3,700 Loan from bank 14,000 $ 30,700 Expenses: Payments to long-term creditors $ 13,000 Expenses required to provide services to customers 9,300 Purchase of land 17,000 39,300 Net income $ 8,600 Based on the information prepare a statement of cash flows in a form consistent with...
Identify each of the following as being Operating, Investing or Financing in nature. Also identify whether...
Identify each of the following as being Operating, Investing or Financing in nature. Also identify whether the cash flow would be “added” (+) or “subtracted” (-) on the Statement of Cash Flows. Operating, Investing or Financing “added” (+) or “subtracted” (-) Cash collected from customers for services provided Purchase manufacturing equipment Borrowing from the bank Loaning cash to an employee Issuing common stock for cash Selling warehouse previously used for storage Making cash interest payments for long term bonds payable...
A summary of cash flows for Paradise Travel Service for the year ended May 31, 20Y6,...
A summary of cash flows for Paradise Travel Service for the year ended May 31, 20Y6, follows: Cash Flows Cash receipts: Cash received from customers $1,486,000 Cash received from issuing common stock 37,000 Cash payments: Cash paid for operating expenses $1,219,000 Cash paid for land 178,000 Cash paid as dividends 23,000 The cash balance as of June 1, 20Y5, was $246,000. Labels Cash flows from financing activities Cash flows from investing activities Cash flows from operating activities Cash flows used...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT