Question

Nitrogen Inc had the following events occur in 2017. Calculate the cash receipts or cash disbursements for each event. a. Taxes Payable on January 1 was $12,400 and on December 31 was $13,600. Income Tax Expense on the income statement was reported at $39,000. b. Cost of goods sold on the income statement was reported at $50,000. Accounts Payable increased $5,000 and Inventory decreased $7,000. c. Sales were reported on the income statement at $100,000. Accounts Receivable increased $5,700. d.Interest Revenue on the income statement was reported at $12,000. Interest Receivable decreased $3,600. e. Salary Expense on the income statement was reported at $55,000. Salary Payable increased $3,900.

Answer 1

А B PARTA Opening Tax payable Income tax expense Closing Tax payable Cash paid (A+B-C) $ 12,400 $ 39,000 $ 13,600 $ 37,800 C D A B PART B Cost of goods sold $ 50,000 Increase in account payable $ 5,000 Decrease in inventory $ 13,600 Cash paid (A-B-C) $ 31,400 с D A PARTC B Sales $ 100,000 Increase in accounts receival $ 5,700 Cash received (a-b) $ 94,300 C A PART D B interest Revenue $ 12,000 Interest receivable decrease $ 3,600 Cash received (a+b) $ 15,600 с A PARTE B Salary expense increase in salary payable Cash paid (a-b) $ 55,000 $ 3,900 $ 51,100 с