Homework Answers
| Kendall Company | ||||||||||||||||
| Horizontal Statements Model for Year 1 | ||||||||||||||||
| Balance Sheet | Income Statement |
Statement of Cash Flows |
||||||||||||||
| Assets | = | Liab. | + | Stockholders' Equity | Revenue | - | Expense | = | Net Inc. | |||||||
| Event | Cash | + | Accts. Rec. | = | Accts. Payable | + | Common Stock | + | Retained Earnings | |||||||
| 1 | 20000 | + | = | + | + | 20000 | 20000 | - | = | 20000 | 20000 | OA | ||||
| 2 | + | = | 10000 | + | + | -10000 | - | 10000 | = | -10000 | ||||||
| 3 | -5000 | + | = | -5000 | + | + | - | = | -5000 | OA | ||||||
| 15000 | + | = | 5000 | + | + | 10000 | 20000 | - | 10000 | = | 10000 | 15000 | NC | |||
a. $5000
b. $10000
c. $15000
d. $10000
e. There is a cash inflow of $20000 from revenue. Of the $10000 utilities expense, only $5000 is paid resulting in a cash outflow of $5000. Thus, the net cash outflow from operating activities is $20000 - $5000 = $15000 while the expenses are $10000.
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Mailings Review View Help ses. Unless you need to edit, it's safer to stay in Protected View Enable Editing LO 2-2,2-3, 2-4 Exercise 2-88 Elefaccrue the neces They los experienced the wing events in Your 1 in your operation 1. Recived $20,000 cash from the common stock 2. Performed services on sccount for $38.000 3. Puld the t ype of $2.500. 4. Collected $21.000 of the accounts receivable 5. Recorded $15.000 of crud salaries at the end of the year...
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