ACC 100 Lecture Notes - Lecture 4: Deferral, Retained Earnings, Balance Sheet

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greeneel33

4 Apr 2018

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Document Summary

Below are listed the june 30th balances for glamphoto, a photography business in oakville that started on june 1, 2015. All the accounts and items are listed in random order. If it is an account indicate the element and the sub- element if applicable (for example, current or long term liabilities). If it is an activity indicate what type of activity it is (financing, investing, or operating). Create the income statement, the statement of retained earnings, the balance sheet, and the statement of cash flows in good form, with proper headings and format. 3 pages, including this one, to create the statements. Statement of cash flows on the next page. It was 0 but you could have paid 327. Legally you could have you can pay with cash of the business. 10,000 of dividends cannot be paid off because you only have 5,390 of cash. Di(cid:448)ide(cid:374)ds is a repay(cid:373)e(cid:374)t of profit to the o(cid:449)(cid:374)er.

Related Questions

1. Fill in the table by indicating if it is an increasing (+) or decreasing (-) transaction. Also indicate if it is an operating (O), investing (I), or financing (F), activity. + or - O, I, or F

Cash payment of dividends	2,000
Cash payment for inventory	120,650
Cash payment for expenses	61,000
Cash payment for wages	45,250
Cash payment for interest expense	925
Cash payment for purchase of equipment	25,350
Cash payment for repayment of debt	14,000
Cash collection of accounts receivable	340,500
Cash collection of interest revenue	12,500
Cash collection of dividend revenue	10,500
Cash proceeds from sale of equipment	12,000
Cash proceeds from sale of common stock	55,000

2. Using the information in the table from question 1, complete the following statement of cash flows using the direct method. List each transaction and amount under the appropriate section. Be sure to indicate if it is increasing or decreasing (+ or -). You may not need to use all of the lines.

Cash from Operating Activity	Amount








Net cash __ (provided or used) by operating activity

Cash from Investing activity	Amount




Net cash _____ (provided or used) by investing activity

Cash from Financing Activity	Amount





Net cash __ (provided or used) by financing activity

Net change in cash during period

Cash at beginning of period 27,000

Cash at end of period

whitescorpion697

7 Effect of issuing common stock on the balance sheet

Newly formed Electronics Services Corporation has 100,000 sharesof $10 par common stock authorized. On March 1, 2014, ElectronicsServices issued 20,000 shares of the stock for $12 per share. OnMay 2 the company issued an additional 30,000 shares for $15 pershare. Electronics Services was not affected by other events during2014.

Required

Record the transactions in a horizontal statements model likethe following one. In the Cash Flow column, indicate whether theitem is an operating activity (OA), an investing activity (IA), ora financing activity (FA). Use NA to indicate that an element wasnot affected by the event. (Enter any decreases to accountbalances and cash outflows with a minus sign.)

ELECTRONIC SERVICES CORPORATION

HORIZONTAL STATEMENTS MODEL

DATE CASH=LIABILITIES+COMMON STOCK+PAID N CAPITALREV.-EXPENSE=NET STATEMENT

IN EXCESS INCOME OF CASH FLOW

March 1, 2014

May 1, 2014

b. Determine the amount Electronics Serviceswould report for common stock on the December 31, 2014, balancesheet. COMMON STOCK( )

c. Determine the amount Electronics Serviceswould report for paid-in capital in excess of par.

PAID IN CAPITAL EXCESS OF PAR( )

d.	What is the total amount ofcapital contributed by the owners? TOTAL PAID IN CAPITAL ( )

What amount of total assets would Electronics Services report onthe December 31, 2014, balance sheet? TOTAL ASSETS ( )

10 Effect of cash dividends on financial statements

On October 1, 2014, Daster Corporation declared a $59,600 cashdividend to be paid on December 15 to shareholders of record onNovember 1.

Required

Record the events occurring on October 1 and December 15 in ahorizontal statements model like the following one. In the CashFlow column, indicate whether the item is an operating activity(OA), an investing activity (IA), or a financing activity (FA). Theletters NA indicate that an element is not affected by the event.(Enter any decreases to account balances and cash outflowswith a minus sign.)

DASTER CORPORATION

HORIZONTAL STATEMENT MODEL

DATE ASSETS=LIABILITIES+COMMON+RETAINED REVENUE-EXPENSES=NETSTATEMENT

STOCK EARNINGS INCOME CASH FLOWS

10/01

11/01

12/15