Homework Answers
For option 1:
| Total Equity | = | Common Stock + Retained Earnings | |
| Total Equity | = | $ 9000 + $ 500 | |
| = | $ 9,500.00 | (Workings) | |
| Workings | ||||
| Income Statement | ||||
| Cash Revenue | $ 4,500.00 | |||
| Less: | Cash Expense | $ 3,750.00 | ||
| Net Income | $ 750.00 | |||
| Statement of Retained Earnings | ||||
| Beginning balance | $ - | |||
| Add: | Net Income | $ 750.00 | ||
| Less: | Dividend paid | $ 250.00 | ||
| Ending Balance | $ 500.00 | |||
Therefore, option 1 is not correct.
For option 2:
| Cash Flow from Operating activities | ||||
| Cash Revenue | $ 4,500.00 | |||
| Cash Expense | $(3,750.00) | |||
| Net cash flow from operating activities | $ 750.00 | |||
Therefore, option 2 is not correct.
For option 3:
| Income Statement | ||||
| Cash Revenue | $ 4,500.00 | |||
| Less: | Cash Expense | $ 3,750.00 | ||
| Net Income | $ 750.00 | |||
Therefore, option 3 is not correct.
For option 4:
| Cash Flow from Financing activities | ||||
| Common stock issued | $ 9,000.00 | |||
| Dividend paid | $ (250.00) | |||
| Net cash flow from financing activities | $ 8,750.00 | |||
Therefore, option 4 is correct.
Add Answer to:
Santa Fe Company was started on January 1, Year 1, when it acquired $9,000 cash by...
Santa Fe Company was started on January 1, Year 1, when it acquired $8,500 cash by...
Santa Fe Company was started on January 1, Year 1, when it acquired $8,500 cash by issuing common stock. During Year 1, the company earned cash revenues of $4,250, paid cash expenses of $3,000, and pald a cash dividend of $550. Which of the following is true based on this information? Multiple Choice The Year 1 income statement would show net income of $700. The Yeart statement of cash flows would show net cash inflow from operating activities of $1250...
Santa Fe Company was started on January 1, Year 1, when it acquired $8,900 cash by...
Santa Fe Company was started on January 1, Year 1, when it acquired $8,900 cash by issuing common stock. During Year 1, the company earned cash revenues of $4,850, paid cash expenses of $3,200, and paid a cash dividend of $750. Based on this information, Answer Choices: Multiple Choice The balance sheet at December 31, Year 1 would show total equity of $13,750. The Year 1 statement of cash flows would show net cash inflow from financing activities of $8,150....
Cascade Company was started on January 1, Year 1, when it acquired $161,000 cash from the...
Cascade Company was started on January 1, Year 1, when it acquired $161,000 cash from the owners. During Year 1, the company earned cash revenues of $87,500 and incurred cash expenses of $61,200. The company also paid cash distributions of $11,500. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.) c. Cascade is a corporation. It issued 10,000...
Munoz Manufacturing Company was started on January 1, year 1, when it acquired $82,000 cash by...
Munoz Manufacturing Company was started on January 1, year 1, when it acquired $82,000 cash by issuing common stock. Munoz immediately purchased office furniture and manufacturing equipment costing $8,400 and $27,100, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,400 salvage value and an expected useful life of three years. The company paid $11,100 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company...
Fanning Manufacturing Company was started on January 1, year 1, when it acquired $85,000 cash by...
Fanning Manufacturing Company was started on January 1, year 1, when it acquired $85,000 cash by issuing common stock. Fanning immediately purchased office furniture and manufacturing equipment costing $9,100 and $26,000, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,800 salvage value and an expected useful life of three years. The company paid $11,000 for salaries of administrative personnel and $15,900 for wages to production personnel. Finally, the company...
Thornton Manufacturing Company was started on January 1, year 1, when it acquired $77,000 cash by...
Thornton Manufacturing Company was started on January 1, year 1, when it acquired $77,000 cash by issuing common stock. Thornton immediately purchased office furniture and manufacturing equipment costing $9,100 and $27,100, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,700 salvage value and an expected useful life of three years. The company paid $11,900 for salaries of administrative personnel and $15,900 for wages to production personnel Finally, the company...
Thornton Manufacturing Company was started on January 1, year 1, when it acquired $77,000 cash by...
Thornton Manufacturing Company was started on January 1, year 1, when it acquired $77,000 cash by issuing common stock. Thornton immediately purchased office furniture and manufacturing equipment costing $9,100 and $27,100, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,700 salvage value and an expected useful life of three years. The company paid $11,900 for salaries of administrative personnel and $15,900 for wages to production personnel Finally, the company...
1. The company started when it acquired $17.000 cash by issuing common stock 2. Purchased a...
1. The company started when it acquired $17.000 cash by issuing common stock 2. Purchased a new cooktop that cost $14,200 cash. 3. Earned $22.500 in cash revenue. 4. Paid $12,300 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, 2018, the cooktop has an expected useful life of four years and an estimated salvage value of $2,700. Use straight-line depreciation. The adjusting entry was made as of December 31,...
Maben Company was started on January 1, Year 1, and experienced the following events during its...
Maben Company was started on January 1, Year 1, and experienced
the following events during its first year of operation:
Acquired $31,000 cash from the issue of common stock.
Borrowed $39,000 cash from National Bank.
Earned cash revenues of $49,000 for performing services.
Paid cash expenses of $45,500.
Paid a $1,100 cash dividend to the stockholders.
Acquired an additional $21,000 cash from the issue of common
stock.
Paid $10,000 cash to reduce the principal balance of the bank
note.
Paid...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $84,000 cash by issuing...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $84,000 cash by issuing common stock. Vernon immediately purchased office furniture and manufacturing equipment costing $7,700 and $25,300, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,100 salvage value and an expected useful life of three years. The company paid $11,400 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid...
Santa Fe Company was started on January 1, Year 1, when it acquired $8,500 cash by issuing common stock. During Year 1, the company earned cash revenues of $4,250, paid cash expenses of $3,000, and pald a cash dividend of $550. Which of the following is true based on this information? Multiple Choice The Year 1 income statement would show net income of $700. The Yeart statement of cash flows would show net cash inflow from operating activities of $1250...
Thornton Manufacturing Company was started on January 1, year 1, when it acquired $77,000 cash by issuing common stock. Thornton immediately purchased office furniture and manufacturing equipment costing $9,100 and $27,100, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,700 salvage value and an expected useful life of three years. The company paid $11,900 for salaries of administrative personnel and $15,900 for wages to production personnel Finally, the company...
Thornton Manufacturing Company was started on January 1, year 1, when it acquired $77,000 cash by issuing common stock. Thornton immediately purchased office furniture and manufacturing equipment costing $9,100 and $27,100, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,700 salvage value and an expected useful life of three years. The company paid $11,900 for salaries of administrative personnel and $15,900 for wages to production personnel Finally, the company...
1. The company started when it acquired $17.000 cash by issuing common stock 2. Purchased a new cooktop that cost $14,200 cash. 3. Earned $22.500 in cash revenue. 4. Paid $12,300 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, 2018, the cooktop has an expected useful life of four years and an estimated salvage value of $2,700. Use straight-line depreciation. The adjusting entry was made as of December 31,...
Maben Company was started on January 1, Year 1, and experienced
the following events during its first year of operation:
Acquired $31,000 cash from the issue of common stock.
Borrowed $39,000 cash from National Bank.
Earned cash revenues of $49,000 for performing services.
Paid cash expenses of $45,500.
Paid a $1,100 cash dividend to the stockholders.
Acquired an additional $21,000 cash from the issue of common
stock.
Paid $10,000 cash to reduce the principal balance of the bank
note.
Paid...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $84,000 cash by issuing common stock. Vernon immediately purchased office furniture and manufacturing equipment costing $7,700 and $25,300, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,100 salvage value and an expected useful life of three years. The company paid $11,400 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid...
Most questions answered within 3 hours.
-
The College of Business at Northeast College is accumulating
data as a first step in the...
asked 1 second from now -
A flint glass plate (n = 1.66) rests on the bottom of an
aquarium tank. The...
asked 8 minutes ago -
The position in an object as a function of time is given as ?
(?) =...
asked 23 minutes ago -
Consider a different car. Its initial position at time 5 s is
5m, and it moves...
asked 5 minutes ago -
An electric power station that operates at 25 kV and uses a 20:1
step-up ideal transformer...
asked 7 minutes ago -
Discuss the sales orders process module(s) in the Enterprise
Resource Planning system. How does it contribute...
asked 23 minutes ago -
Which of the eight traits/ skills associated with being an
effective project manager is the most...
asked 7 minutes ago -
In the Metric System, the basic unit of measurement for length
is ___
In the Metric...
asked 14 minutes ago -
A spatially uniform electric field varies in time according
to E = Eo + 3000 t,...
asked 14 minutes ago -
A sample of C3H8 has 1.60×1024 H atoms.
How many carbon atoms does the sample contain?...
asked 20 minutes ago -
Design a class for python named PersonData with the following
member variables:
lastName
firstName
address
city...
asked 37 minutes ago -
How does use of the risk/need/responsivity model impact
effective rehabilitation services?
asked 41 minutes ago