Required:

1. Correct the recorded activity for Android for Life during July on the attached spreadsheet

2. Correct the balance sheet and income statement for Android for Life in July 2015 on the attached spreadsheet.

3. Is the large decline in cash a concern?

Android for Life Inc.

On July 1, 2015, Andy incorporated her business under the name Android for Life, Inc. Listed below are various transactions that occurred during the remainder of the year:

(a) On July 1, Andy purchased all of Android for Life common stock for $100,000 cash.

(b) On July 1, Android for Life paid $3,000 to an attorney to prepare and file incorporation documents with the State of Texas.

(c) On July 2, Android for Life borrowed $100,000 from a local bank. The bank note required payment of principal in four annual installments of $25,000 beginning on July 1, 2016. In addition, the note specified interest payments of 6%, with the first payment due on July 1, 2016.

(d) On July 3, Android for Life signed a five-year lease on a building to be used as the veterinary clinic. The lease required a payment of $10,000 per month , payable on the first day of each month. Android for Life paid the amount for July on the date the lease was signed.

(e) On July 5, Android for Life paid $150,000 for medical equipment, office furniture, and other equipment.

(f) On July 6, Android for Life purchased various inventory items for $8,500 cash.

(g) Also on July 6, Android for Life purchased $500 worth of office supplies for cash.

(h) On July 28, Android for Life paid employees wages of $8,000 (which included Andyâs salary of $6,000).

(i) During July, Android for Life received $30,000 from clients for office visits and sales of merchandise (food, clothes, etc.).

A review of Android for Life records at July 31, 2015, revealed the following:

(j) Clients still owed Android for Life $3,500 for services performed during July but not yet billed. These amounts are expected to be billed and collected in August.

(k) At the end of July, a physical count of inventory revealed that $1,000 of inventory was still on-hand.

(l) At the end of July, a physical count of office supplies revealed that $100 of supplies were still on-hand.

(m) Depreciation on the equipment for July was estimated to be $1,250.

(n) Interest needs to be recorded on the note payable.

	Assets								Liabilities		Stockholders' Equity
		Accounts		Office	Property, Plant	Intangible	Accumulated		Notes	Interest	Common	Retained
Transaction	Cash	Receivable	Inventory	Supplies	& Equipment	Assets	Depreciation	=	Payable	Payable	Stock	Earnings
purchase of Common Stock	(100,000)										(100,000)
Payment for Articles of Incorporation	(3,000)					3,000
Note / Loan (interest expense on income statement?)	100,000								100,000
Long-term Lease (show on income statement $10k?)	(10,000)											(10,000)
Long-term Equipment	(150,000)				150,000
Inventory Items	(8,500)		8,500
Office Supplies	(500)			500
Wages	(8,000)											(8,000)
Office Visits/ Merchandise	30,000											30,000
Services Performed		3,500										3,500
Inventory Used (income statement expense?)	7,500		(7,500)
Office Supplies Used (income statement expense?)				(400)								(400)
Depreciation on Equipment (income statement expense?)							(1,250)					(1,250)
Interest Expense (income statement expense?)										6,000		(6,000)

Totals	(142,500)	3,500	1,000	100	150,000	3,000	(1,250)		100,000	6,000	(100,000)	7,850

Android Inc.
Income Statement
For the month ended July 31st, 2015


Revenues
Sales and Revenues		33,500
Less: Cost of goods Sold		(7,500)
Gross Profit		26,000


Expenses
Organizational Expenses	3,000
Salaries Expense	8,000
Office Supplies Expense	400
Depreciation Expense	1,250
Interest Expense	500
TOTAL EXPENSE		13,150

NET INCOME		12,850






Android Inc.
Balance Sheet
As at July 31st, 2015
Assets:
Current Assets
Cash	60,000
Accounts Receivable	3,500
Inventory	1,000
Office Supplies	100
Total Current Assets		64,600

Plant Property and Equipment
Plant Property and Equipment	150,000
Less: Accumulated Depreciation	(1,250)	148,750

TOTAL ASSETS		213,350


LIABILITIES
Notes Paybles	100,000
Interest Payale	500
TOTAL LIABILITIES		100,500

Shareholder's Equity
Common Stock	100,000
Retained Earnings	12,850
TOTAL Shareholder's Equity		112,850

TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY		213,350

yellowchimpanzee681

The comparative balance sheet of Whitman Co. at December 31,2016 and 2015, is as follows:

1		Dec. 31, 2016	Dec. 31, 2015
2	Assets
3	Cash	$918,260.00	$965,110.00
4	Accounts receivable (net)	â828,050.00	761,830.00
5	Inventories	1,268,550.00	1,163,510.00
6	Prepaid expenses	28,760.00	35,720.00
7	Land	315,810.00	479,900.00
8	Buildings	1,463,300.00	900,740.00
9	Accumulated depreciation-buildings	(408,350.00)	(381,910.00)
10	Equipment	512,470.00	454,060.00
11	Accumulated depreciation-equipment	(142,270.00)	(159,730.00)
12	Total assets	$4,784,580.00	$4,219,230.00
13	Liabilities and Stockholdersâ Equity
14	Accounts payable (merchandise creditors)	$922,360.00	$957,810.00
15	Bonds payable	270,000.00	0.00
16	Common stock, $25 par	316,000.00	116,000.00
17	Paid-in capital: Excess of issue price over parâcommon stock	775,000.00	559,000.00
18	Retained earnings	2,501,220.00	2,586,420.00
19	Total liabilities and stockholdersâ equity	$4,784,580.00	$4,219,230.00

The noncurrent asset, noncurrent liability, and stockholdersâequity accounts for 2016 are as follows:

ACCOUNT Land

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance			479,900
Apr.	20	Realized $152,430 cash from sale		164,090	315,810

ACCOUNT Buildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance			900,740
Apr.	20	Acquired for cash	562,560		1,463,300

ACCOUNT Accumulated DepreciationââBuildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				381,910
Dec.	31	Depreciation for year		26,440		408,350

ACCOUNT Equipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance			454,060
	26	Discarded, no salvage		47,260	406,800
Aug.	11	Purchased for cash	105,670		512,470

ACCOUNT Accumulated Depreciation ââEquipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				159,730
	26	Equipment discarded	47,260			112,470
Dec.	31	Depreciation for year		29,800		142,270

ACCOUNT Bonds Payable

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
May	1	Issued 20-year bonds		270,000		270,000

ACCOUNT Common Stock $25 par

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				116,000
Dec.	7	Issued 8,000 shares of common stock for $52 per share		200,000		316,000

ACCOUNT Paid-In Capital in Excess of ParââCommonStock

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				559,000
Dec.	7	Issued 8,000 shares of common stock for $52 per share		216,000		775,000

ACCOUNT Retained Earnings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				2,586,420
Dec.	31	Net loss	53,460			2,532,960
	31	Cash dividends	31,740			2,501,220

Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Refer to theLabels and Amount Descriptions list provided for the exact wordingof the answer choices for text entries. Be sure to complete theheading of the statement. In the operating activities section, usethe minus sign to indicate cash outflows, decreases in cash and anet cash outflow, if required. In the investing and financingactivities section, use a minus sign only to indicate a NET cashoutflow for the section.

Labels and Amount Descriptions

Labels andAmount Descriptions
Cash paid for acquisition ofbuilding
Cash paid for dividends
Cash paid for merchandise
Cash paid for purchase ofequipment
Cash received from customers
Cash received from issuance ofbonds payable
Cash received from issuance ofcommon stock
Cash received from land sold
December 31, 2016
Decrease in accounts payable
Decrease in accountsreceivable
Decrease in cash
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
For the Year Ended December 31,2016
Gain on sale of investments
Gain on sale of land
Increase in accounts payable
Increase in accountsreceivable
Increase in cash
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Issuance of common stock foracquisition of building
Issuance of common stock forpurchase of equipment
Issuance of common stock to retirebonds
Loss on sale of investments
Loss on sale of land
Net cash flow from financingactivities
Net cash flow from investingactivities
Net cash flow from operatingactivities
Net cash flow used for financingactivities
Net cash flow used for investingactivities
Net cash flow used for operatingactivities
Net income
Net loss

Statement of Cash Flows

Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Refer to theLabels and Amount Descriptions list provided for the exact wordingof the answer choices for text entries. Be sure to complete theheading of the statement. In the operating activities section, usethe minus sign to indicate cash outflows, decreases in cash and anet cash outflow, if required. In the investing and financingactivities section, use a minus sign only to indicate a NET cashoutflow for the section.

Whitman Co.

Statement of Cash Flows

1	Cash flows from operating activities:
2
3	Adjustments to reconcile net loss to net cash flow fromoperating activities:
4
5
6	Changes in current operating assets and liabilities:
7
8
9
10
11
12
13	Cash flows from investing activities:
14
15
16
17
18
19	Cash flows from financing activities:
20
21
22
23
24
25	Cash at the beginning of the year
26	Cash at the end of the year

olivedonkey543

The comparative balance sheet of Del Ray Enterprises Inc. atDecember 31, 2016 and 2015, is as follows:

1		Dec. 31, 2016	Dec. 31, 2015
2	Assets
3	Cash	$146,600.00	$179,800.00
4	Accounts receivable (net)	224,600.00	242,000.00
5	Merchandise inventory	321,600.00	299,200.00
6	Prepaid expenses	13,400.00	9,600.00
7	Equipment	655,000.00	537,000.00
8	Accumulated depreciation-equipment	(170,800.00)	(132,200.00)
9	Total assets	$1,190,400.00	$1,135,400.00
10	Liabilities and Stockholdersâ Equity
11	Accounts payable (merchandise creditors)	$250,200.00	$237,600.00
12	Mortgage note payable	ââââ0.00	336,000.00
13	Common stock, $10 par	74,000.00	24,000.00
14	Paid-in capital: Excess of issue price over parâcommon stock	âââ470,000.00	320,000.00
15	Retained earnings	396,200.00	217,800.00
16	Total liabilities and stockholdersâ equity	$1,190,400.00	$1,135,400.00

Additional data obtained from the income statement and from anexamination of the accounts in the ledger for 2016 are asfollows:

A.	Net income, $332,000
B.	Depreciation reported on the income statement, $83,400
C.	Equipment was purchased at a cost of $162,800 and fullydepreciated equipment costing $44,800 was discarded, with nosalvage realized.
D.	The mortgage note payable was not due until 2018 but the termspermitted earlier payment without penalty.
E.	10,000 shares of common stock were issued at $20 for cash.
F.	Cash dividends declared and paid, $153,600

Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Refer to theLabels and Amount Descriptions list provided for the exact wordingof the answer choices for text entries. Be sure to complete theheading of the statement. In the operating activities section, usethe minus sign to indicate cash outflows, decreases in cash and anet cash outflow, if required. In the investing and financingactivities section, use a minus sign only to indicate a NET cashoutflow for the section.

I have the statement of cash flows, but I need help with thespreadsheet (worksheet) for statement of cash flows.

DEL RAY ENTERPRISES INC.

Statement of Cash Flows

For the Year Ended December 31, 2016

Cash flows from operating activities:

Net income

$ 332,000

Adjustments to reconcile net income to net cash

flow from operating activities:

Depreciation

83,400

Changes in current operating assets and liabilities:

Decrease in accounts receivable

17,400

Increase in merchandise inventory

(22,400)

Increase in prepaid expenses

(3,800)

Increase in accounts payable

12,600

Net cash flow from operating activities

$ 419,200

Cash flows from investing activities:

Less cash paid for purchase of equipment

$ (162,800)

Net cash flow used for investing activities

(162,800)

Cash flows from financing activities:

Cash received from sale of common stock

$ 200,000

Less cash paid for dividends

(153,600)

Less cash paid to retire mortgage note payable

(336,000)

Net cash flow used for financing activities

(289,600)

Increase (decrease) in cash

$ (33,200)

Cash at the beginning of the year

179,800

Cash at the end of the year

$ 146,600

DEL RAY ENTERPRISES INC.

Spreadsheet (Work Sheet) for Statement of CashFlows

For the Year Ended December 31, 2016

Balance,

Transactions

Balance,

Dec. 31, 2015

Debit

Credit

Dec. 31, 2016

Cash

179,800

146,600

Accounts receivable (net)

242,000

224,600

Merchandise inventory

299,200

321,600

Prepaid expenses

9,600

13,400

Equipment

537,000

655,000

Accum. depr. - equipment

(132,200)

(170,800)

Accounts payable

(237,600)

(250,200)

Mortgage note payable

(336,000)

-

Common stock, $25 par

(24,000)

(74,000)

Paid-in capital in excess of par

(320,000)

(470,000)

Retained earnings

(217,800)

(396,200)

Totals

-

Operating activities:

Net income

Depreciation

Decrease in accounts receivable

Increase in merchandise inventory

Increase in prepaid expenses

Increase in accounts payable

Investing activities:

Purchase of equipment

Financing activities:

Payment of cash dividends

Sale of common stock

Payment of mortgage note payable

Net decrease in cash

Totals

erinduck149

AFM391 Study Guide - Final Guide: Java Business Integration, Capital Structure, Treasury Stock

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