Question

Step 24 of 40: Transaction #3 es Shareholder' s ity 2 Your turn: Transaction # 3 Nunya Business has received 25% of the amount you recorded in Transaction #2 as partial payment of Its accounts receivable. After you record this transaction: The amounts will be based on formulas in the worksheet cells, as opposed to numbers that you've calculated outside of Excel and then manually Input The check formula should return TRUE. Make a selection from column to indicate the transaction's impact on cash flow, if any. Choose an account name from column R if appropriate. Horizontalnci e ment Balance Shed Income Statement Chart of Accounts Students We're here to help. Email us at [email protected] 29 / 46 0 001/00:30

how would these questions be answered and what are the formulas to use in excel?

Answer 1

slide id given is 4471, so calculations are based on this

entry1		Dr.	Cr.
	Cash	44710
	common stock		44710
	(4471*10)

Notes:

Cash is an asset, debiting cash account will increase cash balance as there is an inflow of cash by issuing common stock. Common stock issued will increase shareholder's equity in the firm and therefore credited, equity balance is a liability for the firm as that money belongs to shareholders.

entry2		Dr.	Cr.
	Accounts receivable	37258
	services revenue		37258
	(4471*100)/12

Notes:

even though no cash is received but services has been performed and revenue is earned so revenue will be recognized in the current year income statement .increasing income increases the balance of retained earnings.services are performed on account, so our debtors/accounts receivable balance will increase by debting A/R account as it is an asset.

entry 3		Dr.	Cr.
	Cash	9315
	Accounts receivable		9315
	(37258*25%)

Notes:

Cash debited as payment made by debtors will increase cash flow. Accounts receivable balance will be reduced as those debtors have made the payments.

		Dr.	Cr.
entry4	Salary	3726
	cash		3726
	(37258*10%)

salary expense account debited as salaries for current period are paid and will reduce current period income and thereby reducing retained earnings. cash balance reduced

		Dr.	Cr.
entry5	Rent expense	1863
	cash		1863
	(37258*5%)

Rent expense account debited as Rent for current period are paid and will reduce current period income and thereby reducing retained earnings.cash balance reduced

	Assets		=	Liabilities	+	Shareholder's equity
Entry#	Cash	Accounts Receivable				Common stock	Retained earnings
1	44710					44710
2		37258					37258
3	9315	-9315
4	-3726						-3726
5	-1863						-1863
Total	48436	27943	=			44710	31669
Total assets	76379			Total liab+equity	76379

Profit and loss				Cash flow	Account Name
Income	-	expense=	Net income
				Increase cash from financing activity
37258			37258	no impact on cash flow	Revenue
				Increase cash from operating activity
		-3726	-3726	Decrese cash from operating activity	Expense
		-1863	-1863	Decrese cash from operating activity	Expense
			31669 net income transf to RE