Homework Answers
(c) If the cost is capitalized and expensed through depreciation charge, then the cash flows from operating activities will not be affected in both years. The reason for this is that depreciation is a non cash expense and there will be no impact of a non cash transaction on cash flows from operating activities. This transaction will impact cash flows from investing activities. So, in year 1 and year 2, the effect on cash flows from operating activities will be $0.
(d) If the cost is recognized as maintenance expenses, then the cash flows from operating expenses will be reduced by $23860 in year 1, being expenses paid in cash. In year 2, there will be no effect on cash flows from operating activities.
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I can't figure out the operating activities amount for year 1 On January 1, Year 1, Webb Construction Company overha...
On January 1, Year 1, Webb Construction Company overhauled four cranes, resulting in a slight increase...
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Life, Inc. experienced the following events in Year 1, its first year of operation: 1. Performed...
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I don't know if I did it right but I still can't figure out the supplier...
I don't know if I did it right but I still can't
figure out the supplier amount
Saved Help Save& Exit Subm Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $136, 200 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense 55, 000 18, 500 31,000 10,300 5,100...
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Life, Inc. experienced the following events in Year 1, its first year of operation: Performed counseling...
Life, Inc. experienced the following events in Year 1, its first
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Performed counseling services for $18,800 cash.
On February 1, Year 1, paid $12,600 cash to rent office space
for the coming year.
Adjusted the accounts to reflect the amount of rent used during
the year.
Required
Based on this information alone:
a. Record the events in general ledger accounts
under an accounting equation. (Do not round intermediate
calculations. Enter any decreases to account balances with a...
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That's the complete question. E. Three different companies each purchased trucks on January 1, Year 1, for $50,0...
That's the complete question. E.
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I don't know if I did it right but I still can't
figure out the supplier amount
Saved Help Save& Exit Subm Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $136, 200 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense 55, 000 18, 500 31,000 10,300 5,100...
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Life, Inc. experienced the following events in Year 1, its first
year of operation:
Performed counseling services for $18,800 cash.
On February 1, Year 1, paid $12,600 cash to rent office space
for the coming year.
Adjusted the accounts to reflect the amount of rent used during
the year.
Required
Based on this information alone:
a. Record the events in general ledger accounts
under an accounting equation. (Do not round intermediate
calculations. Enter any decreases to account balances with a...
That's the complete question. E.
Three different companies each purchased trucks on January 1, Year 1, for $50,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in Year 1. 42,000 miles in Year 2,40,000 miles in Year 3, and 60,000 miles in Year 4. Each of the three companies earned $40,000 of cash revenue during each of the four years. Company A uses...
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