Question

can you help me solve this problem? accounting 200

SA-11 accounts along with some ancillary information and ask the student to deduce what happened to cash during the period. This procedure amounts to making some educated guesses about the effect of various transactions on cash. To do this correctly, the student has to understand the accounting treatment of all the affected accounts. The statement of cash flows, therefore, creates an excellent vehicle for review. A problem such as this will be presented in class, and a homework problem. Typical Incorporated, will be assigned. Problems for Section 5A 5A-1. The comparative balance sheet for TYPICAL Incorporated is shown below for January 1, 20x1, and December 31, 20x1. The income statement for 20x1 is also shown. TYPICAL makes all sales and purchases on account. Any equipment purchases made during the year were in cash. December 31 TYPICAL INCORPORATED Comparative Balance Sheet January 1 and December 31, 20x1 January 1 Assets Cash $ 5,000 Accounts receivable 3,000 Supplies 1,000 Plant & equipment 7,000 Accumulated depreciation 0 Total Assets $16.000 $ 3,000 200 7,000+400 6,000 5006 17,000 /Ocon (3.000)-3000 $30,000 $ 1,000 $ 0 -1000 2000 Liabilities & Owners' Equity Accounts payable Wages payable Total Liabilities 2,000 $ 2,000 $ 1,000 ,000 16,000 10,000 5,000 $16.000 Common stock Retained earnings Total Liabilities & Owners' Equity 12,000 +7:00 $30.000 Chapter 5 Section A

Answer 1

Solution:-

1& 2:- Each Ledger of all the accounts of Balance Sheet & Income Statement are prepared in T-account & also explain everything happens in every account by coordinating accounts from Balance Sheet to Income Statement and lastly by finding the balance figure.   

Accounts Receivable Account

Particulars(Dr)	Amount	Particular(Cr)	Amount
Opening Balance	3,000	Cash (Balance Figure)	30,000
Revenue	34,000	Closing Balance	7,000
	37,000		37,000

Revenue Account  

Particulars(Dr)	Amount	Particular(Cr)	Amount
Income Statment	34,000	Account Receivable	34,000
	34,000		34,000

Supplies Account

Particulars(Dr)	Amount	Particular(Cr)	Amount
Opening Balance	1,000
Cash (Balance Figure)	20,000	Supplies Expenses	15,000
		Closing Balance	6,000
	21,000		21,000

Supplies Expenses Account

Particulars(Dr)	Amount	Particular(Cr)	Amount
Supplies	15,000	Income Statment	15000
	15,000		15,000

Plant & Equipment Account

Particulars(Dr)	Amount	Particular(Cr)	Amount
Opening Balance	7,000
Cash (Balance Figure)	10,000
		Closing Account	17,000
	17,000		17,000

Accumulated Depreciation Account

Particulars(Dr)	Amount	Particular(Cr)	Amount
		Opening Balance	0
		Depreciation Expenses	3,000
Closing Balance	3,000
	3,000		3,000

Depreciation Expenses Account

Particulars(Dr)	Amount	Particular(Cr)	Amount
Accumulated Depreciation	3,000	Income Statement	3,000
	3,000		3,000

Account Payable

Particulars(Dr)	Amount	Particular(Cr)	Amount
Cash (Balance Figure)	1,000	Opening Balance	1,000
Closing Balance	0
	1,000		1,000

Wages Payable

Particulars(Dr)	Amount	Particular(Cr)	Amount
		Opening Balance	0
Cash(Balance Figure)	7,000	Wages Expenses	9,000
Closing Balance	2,000
	9,000		9,000

Wages Expenses

Particulars(Dr)	Amount	Particular(Cr)	Amount
Wages Payable	9,000	Income Statement	9,000
	9,000		9,000

Common Stock

Particulars(Dr)	Amount	Particular(Cr)	Amount
		Opening Balance	10,000
		Cash (Balance Figure)	6,000
Closing Balance	16,000
	16,000		16,000

Retain Earning

Particulars(Dr)	Amount	Particular(Cr)	Amount
		Opening Balance	5,000
		Income Statement(Balance Figure)	7,000
Closing Balance	12,000
	12,000		12,000

Cash Account

Particulars(Dr)	Amount	Particular(Cr)	Amount
Opening Balance	5,000	Supplies	20,000
Account Receiveable	30,000	Plant & Equipment	10,000
Common Stock	6,000	Account Payable	1,000
		Wages Payable	7,000
		Closing Balance	3,000
	41,000		41,000

3:- Classification of cash transactions into operating(0) Investment(I) & Finance (F) and writes out its uses or sources

List of Sources	Amount	List of Use	Amount
From Account Receiveable(0)	30,000	For Supplies(0)	20,000
From Common Stock(F)	6,000	For Plant & Equipment(I)	10,000
		For Account Payable(0)	1,000
		For Wages Payable(0)	7,000

4:- Statement of Cash Flows using Indirect Method

Particulars	Amount	Amount
a. Operating Activity
Income from Income Statment		7,000
Add: Non-cash Expenses & Increase in liability
-Depreciation Expenses	3,000
Increase in Wages Payable	2,000
Less: Increase in Asset & Decrease in Liability
Accounts Receivable	(4,000)
Supplies	(5,000)
Account payable	(1000)
		(5,000)
Cash from Operating Activity		2,000
b. Investing Activity
Purchase of Fixed Asset		(10,000)
Cash from Investing Activity		(10,000)
c. Financing Activity
Proceed from Common Stock		6,000
Cash from Financing Activity		6,000
Net Increase/(Decrease) in cash & cash equivalents		(2,000)
Cash and cash equivalents at beginning of the period		5,000
Cash and cash equivalents at end of the period		3,000