| Suppose your company sells
services of $180 in exchange for $110 cash and $70 on
account. |
Homework Answers
1) JOURNAL ENTRY :
| DATE | ACCOUNTS & EXPLANATION | DEBIT | CREDIT |
| CASH A/C | 110 | ||
| ACCOUNT RECEIVABLE A/C | 70 | ||
| SERVICE REVENUE A/C | 180 | ||
| ( TO RECORD SERVICE REVENUE) | |||
2) NET CASH FLOW = 110
3) NET INCOME = 180
4) SHOW INDIRECT METHOD CASH FLOW :
| NET INCOME | 180 |
| LESS:INCREASE IN ACCOUNT RECEIVBALE | (70) |
| NET CASH FLOW FROM OPERATING ACTIVITY | 110 |
Add Answer to:
Suppose your company sells
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received in cash and $100 is on account. The goods cost your
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also recorded salaries and wages of $70, of which only $30 has been
paid in cash.
Journal Entry:
2)
Calculate the amount that should be reported as net cash flow
from operating activities.
3) Calculate the amount that should be reported
as net income.
4)...
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2016. Davos collected $120,000 cash from accounts receivable during
2016, and the remaining $40,000 was collected in cash dur- ing
2017.
Required
a. Record the 2016 transactions in T-accounts. b. Record the
2016 transactions in a horizontal statements model like the
following one:
c. Determine the amount of revenue Davos would report on the
2016 income statement. d. Determine the amount of cash flow from
operating activities Davos would...
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