Question

The following accounts and corresponding balances were drawn from Avia Company’s Year 2 and Year 1...

The following accounts and corresponding balances were drawn from Avia Company’s Year 2 and Year 1 year-end balance sheets:

Account Title Year 2 Year 1
Unearned revenue $ 8,400 $ 4,950
Prepaid rent 1,770 2,780


During the year, $51,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $27,500.

Required
Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach is used. (Amounts to be deducted should be indicated with a minus sign.)
  

On January 1, Year 1, Shelton Company had a balance of $266,000 in its Land account. During Year 1, Shelton sold land that had cost $86,000 for $146,000 cash. The balance in the Land account on December 31, Year 1, was $296,000.

Required
a. Determine the cash outflow for the purchase of land during Year 1.
  

On January 1, Year 1, DIBA Company had a balance of $417,000 in its Bonds Payable account. During Year 1, DIBA issued bonds with a $174,000 face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable account on December 31, Year 1, was $277,000.

Required
a. Determine the cash outflow for the repayment of bond liabilities assuming that the bonds were retired at face value.
  



b. Prepare the financing activities section of the Year 1 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)
  

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.

Cash received for revenue $           54,450 =51000+8400-4950
Cash paid for Rent $          -26,490 =-(27500+1770-2780)
Cash from Operating Activities $           27,960

2.
Cash outflow for land = $296000 - (266000-86000) = $116000

3.
Cash outflow for bonds = $417000+174000-277000 = $314000

Cash Received for issue of bonds $        1,74,000
Cash used to repay bonds $      -3,14,000
Cash used in financing activities $      -1,40,000
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
The following accounts and corresponding balances were drawn from Avia Company’s Year 2 and Year 1...
The following accounts and corresponding balances were drawn from Avia Company’s Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Unearned revenue $ 7,000 $ 4,900 Prepaid rent 1,490 2,500 During the year, $72,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $17,500. Required Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach is used. (Amounts to...
Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for...
Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents $ 20,700 Accounts receivable $ 13,300 Inventory $ (16,300 ) Prepaid expenses $ 4,200 Long-term investments $ 11,000 Property, plant, and equipment $ 75,600 Accumulated depreciation $ 34,100 Liability and Equity Accounts: Accounts payable $ (19,600 ) Accrued liabilities $ 17,400 Income taxes payable $ 4,300 Bonds payable $ (66,000...
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that...
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $25,800 was sold for $43,860 under terms 2/20, net/30. Customers returned merchandise to Ozark five days after the purchase. The merchandise had been sold for a price of $1,848. The merchandise had cost Ozark $1,120. All customers paid their accounts within the discount period. Selling and administrative expenses amounted to $4,386. Interest expense paid amounted to $390. Land that had cost $7,800...
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that...
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $19,800 was sold for $33,660 under terms 2/20, net/30. Customers returned merchandise to Ozark five days after the purchase. The merchandise had been sold for a price of $1,152. The merchandise had cost Ozark $720. All customers paid their accounts within the discount period. Selling and administrative expenses amounted to $3,366. Interest expense paid amounted to $280. Land that had cost $6,800...
The following account titles and balances were taken from the adjusted trial balance of King Co....
The following account titles and balances were taken from the adjusted trial balance of King Co. for 2016. The company uses the periodic inventory system.   Account Title Balance   Sales returns and allowances $ 11,500   Miscellaneous expense 6,100   Transportation-out 19,100   Sales 21,200   Advertising expense 910   Salaries expense 161,000   Transportation-in 3,250   Purchases 20,750   Interest expense 58,500   Merchandise inventory, January 1 331,000   Rent expense 9,100   Merchandise inventory, December 31 6,750   Purchase returns and allowances 11,350   Loss on sale of land 5,100   Utilities expense...
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...
The following information applies to the questions displayed below.] Lansing Company’s current-year income statement and selected...
The following information applies to the questions displayed below.] Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 118,200 Expenses Cost of goods sold 49,000 Depreciation expense 15,500 Salaries expense 25,000 Rent expense 9,700 Insurance expense 4,500 Interest expense 4,300 Utilities expense 3,500 Net income $ 6,700    LANSING COMPANY Selected Balance Sheet Accounts At December...
[The following information applies to the questions displayed below.]    York Company engaged in the following...
[The following information applies to the questions displayed below.]    York Company engaged in the following transactions for the year 2016. The beginning cash balance was $28,400 and the ending cash balance was $69,102.    1. Sales on account were $282,900. The beginning receivables balance was $94,200 and the ending cash balance was $76,700. 2. Salaries expense for the period was $55,540. The beginning salaries payable balance was $3,798 and the ending balance was $2,170. 3. Other operating expenses for...
The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC):...
The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC): Cash received from: Customers $ 730,000 Interest on notes receivable 19,000 Collection of notes receivable 170,000 Sale of land 47,000 Issuance of common stock 270,000 Cash paid for: Interest on notes payable 25,000 Purchase of equipment 155,000 Operating expenses 475,000 Dividends to shareholders 37,000 Prepare the cash flows from operating activities section of HHC’s statement of cash flows using the direct method. (Amounts to...
The following selected accounts and account balances were taken from the records of Potts Industries. Unfortunately...
The following selected accounts and account balances were taken from the records of Potts Industries. Unfortunately they are all out of order. Except as otherwise indicated, all balances are as of December 31, 2017, before the closing entries were recorded: Cash $22,100 Accounts Receivable $21,000 Land 43,000 Cash flow from operating activities 8,600 Insurance Expense 2,500 Beginning Retained Earnings 47,200 Dividends 5,000 Begining common stock 5,500 Prepaid Insurance 3,500 Service Revenue 86,000 Accounts Payable 15,000 Cash flow from financing activities...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT