Question

In Year 1 Lee Inc billed its customers $56.200 for services performed. The company collected $40.700 of the amount billed. Lee incurred $36.900 of other operating expenses on account. Lee paid $24.500 of the accounts payable Lee acquired $23,000 cash from the issue of common stock. The company invested $18,000 cash in the purchase of land. Required (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions. Use the preceding information to answer the following questions: . What amount of revenue will lee report on the Year 1 income statement? b. What amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? f. What is the amount of net cash flow from investing activities? g. What is the amount of net cash flow from financing activities? h. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet? Complete this question by entering your answers in the tabs below.

Answer 1

Please find below table useful to compute desired results: -

B 1 Particulars Given 2 Billed for service 56200 3 Collected Amount 40700 4 Operating Expenses 36900 5 Paid Accounts payable 24500 6 Acquired Cash from common stock 23000 7 Purchased Land 18000 8 9 Revenue Recognized =B2 10 Cash flow from Revenue =B3 11 Net Income =B2-B4 Revenue Recognized - Expenses 12 Net Cash flow from operating Activities =B3-B5 Cash collected - Cash Paid 13 Net Cash flow from Investing Activities |=-B7 Cash paid to Purchase Assets 14 Net Cash flow from Financing Activities =B6 Cash from common stock 15 Total Assets =B2+B6-B5 16 Total Liabilities =B4-B5 17 Total equity =B6+B2-B4

End results would be as follows: -

B 1 56,200 40.700 36.900 24,500 23.000 18.000 A Particulars Given 2 Billed for service 3 Collected Amount 4 Operating Expenses 5 Paid Accounts payable 6 Acquired Cash from common stock 7 Purchased Land 8 9 Revenue Recognized 10 Cash flow from Revenue 11 Net Income 12 Net Cash flow from operating Activities 13 Net Cash flow from Investing Activities 14 Net Cash flow from Financing Activities 15 Total Assets 16 Total Liabilities 17 Total equity 56,200 40.700 19,300 Revenue Recognized - Expenses 16,200 Cash collected - Cash Paid (18,000) Cash paid to Purchase Assets 23,000 Cash from common stock 54,700 12,400 42,300