Exercise 9-6A Effect of warranties on income and cash flow LO 9-4 To support herself while...
Exercise 9-6A Effect of warranties on income and cash flow LO 9-4
To support herself while attending school, Daun Deloch sold
stereo systems to other students. During the first year of
operations, Daun purchased the stereo systems for $330,000 and sold
them for $440,000 cash. She provided her customers with a one-year
warranty against defects in parts and labor. Based on industry
standards, she estimated that warranty claims would amount to 2
percent of sales. During the year, she paid $4,720 cash to replace
a defective tuner.
Required
Prepare an income statement and statement of cash flows for Daun’s
first year of operation. (Statement of Cash Flows only,
items to be deducted must be indicated with a negative
amount.) What is Daun’s total warranties liability at the
end of the accounting period?
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Exercise 9-6A Effect of warranties on income and cash flow LO 9-4 To support herself while...
To support herself while attending school, Daun Deloch sold stereo systems to other students. During the...
To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations, Deloch purchased the stereo systems for $169.000 and sold them for $318.000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on Industry standards, she estimated that warranty claims would amount to 4 percent of sales. During the year, she paid $2.590 cash to replace a defective tuner. Required a-1. Prepare an income...
Required information Exercise 9-8A Current liabilities LO 9-1, 9-2, 9.4 [The following information applies to the...
Required information Exercise 9-8A Current liabilities LO 9-1, 9-2, 9.4 [The following information applies to the questions displayed below.) The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $50.000 from the issue of common stock 2. Purchased equipment inventory of $380,000 on account. 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost...
Required information Exercise 9-8A Current liabilities LO 9-1, 9-2, 9-4 The following information applies to the...
Required information Exercise 9-8A Current liabilities LO 9-1, 9-2, 9-4 The following information applies to the questions displayed below. The following transactions apply to Ozark Sales for Year 1 1. The business was started when the company received $50,000 from the issue of common stock 2. Purchased equipment inventory of $380,000 on account. 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost...
Exercise 2-6A Effect of accruals on the financial statements LO 2-3 Cordell Inc. experienced the following...
Exercise 2-6A Effect of accruals on the financial statements LO 2-3 Cordell Inc. experienced the following events in Year 1, its first year of operation: Ints eBook 1. Received $48,000 cash from the issue of common stock. 2. Performed services on account for $76,000. 3. Paid a $4,800 cash dividend to the stockholders. 4. Collected $54,000 of the accounts receivable. 5. Paid $48,000 cash for other operating expenses. 6. Performed services for $11,500 cash. 7. Recognized $1,800 of accrued utilities...
Exercise 5-6A Income tax effect of shifting from FIFO to LIFO LO 5-1 [The following information...
Exercise 5-6A Income tax effect of shifting from FIFO to LIFO LO 5-1 [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Beginning Inventory 750 units @ $ 33 Apr. 1 Purchased 2,700 units @ $ 38 Oct. 1 Purchased 950 units @ $ 41 During Year 2, Parvin sold 4,000 units of inventory at $90 per unit and incurred $45,000 of operating expenses....
Required Information Exercise 9-8A Current liabilities LO 9-1,9-2, 9-4 [The following information applies to the questions...
Required Information Exercise 9-8A Current liabilities LO 9-1,9-2, 9-4 [The following information applies to the questions displayed below] The following transactions apply to Ozark Sales for Yeart: 1. The business was started when the company received $50,000 from the issue of common stock 2. Purchased equipment Inventory of $178.000 on account. 3. Sold equipment for $191,500 cash (not including sales tax) Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $116.500...
Exercise 5-6A Income tax effect of shifting from FIFO to LIFO LO 5-1 [The following information...
Exercise 5-6A Income tax effect of shifting from FIFO to LIFO LO 5-1 [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Beginning Inventory 750 units @ $ 33 Apr. 1 Purchased 2,700 units @ $ 38 Oct. 1 Purchased 950 units @ $ 41 During Year 2, Parvin sold 4,000 units of inventory at $90 per unit and incurred $45,000 of operating expenses. Parvin...
Exercise 12-1 Indirect: Cash flow classification LO C1
Exercise 12-1 Indirect: Cash flow classification LO C1 The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an X in the appropriate column(s). (More than one column may be used.) a. Declared and paid a cash dividendb. Recorded depreciation expensec. Pald cash to settle long-term note payabled. Prepaid expenses increased in the yeare....
ozark accounting help Exercise 9-8A Current liabilities LO 9-1, 9-2, 9-4
Required informationExercise 9-8A Current liabilities LO 9-1, 9-2, 9-4[The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $50,000 from the issue of common stock.Purchased equipment inventory of $175,000 on account.Sold equipment for $209,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $134,000.Provided a six-month warranty on the equipment sold....
Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional...
Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 $2,428,000 1,189,720 1,238,280 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense $332,636 58,272 65,556 7,284 Rent expense Amortization expenses-Patents Utilities expense 26,708 490,456 747,824 Gain on sale of equipment 9,712 $ 757,536 Net income $10,100 increase 11,650 increase Accounts payable Salaries payable Accounts receivable $11,800 decrease...
To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations, Deloch purchased the stereo systems for $169.000 and sold them for $318.000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on Industry standards, she estimated that warranty claims would amount to 4 percent of sales. During the year, she paid $2.590 cash to replace a defective tuner. Required a-1. Prepare an income...
Required information Exercise 9-8A Current liabilities LO 9-1, 9-2, 9.4 [The following information applies to the questions displayed below.) The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $50.000 from the issue of common stock 2. Purchased equipment inventory of $380,000 on account. 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost...
Required information Exercise 9-8A Current liabilities LO 9-1, 9-2, 9-4 The following information applies to the questions displayed below. The following transactions apply to Ozark Sales for Year 1 1. The business was started when the company received $50,000 from the issue of common stock 2. Purchased equipment inventory of $380,000 on account. 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost...
Exercise 2-6A Effect of accruals on the financial statements LO 2-3 Cordell Inc. experienced the following events in Year 1, its first year of operation: Ints eBook 1. Received $48,000 cash from the issue of common stock. 2. Performed services on account for $76,000. 3. Paid a $4,800 cash dividend to the stockholders. 4. Collected $54,000 of the accounts receivable. 5. Paid $48,000 cash for other operating expenses. 6. Performed services for $11,500 cash. 7. Recognized $1,800 of accrued utilities...
Required Information Exercise 9-8A Current liabilities LO 9-1,9-2, 9-4 [The following information applies to the questions displayed below] The following transactions apply to Ozark Sales for Yeart: 1. The business was started when the company received $50,000 from the issue of common stock 2. Purchased equipment Inventory of $178.000 on account. 3. Sold equipment for $191,500 cash (not including sales tax) Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $116.500...
Exercise 12-1 Indirect: Cash flow classification LO C1 The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an X in the appropriate column(s). (More than one column may be used.) a. Declared and paid a cash dividendb. Recorded depreciation expensec. Pald cash to settle long-term note payabled. Prepaid expenses increased in the yeare....
Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 $2,428,000 1,189,720 1,238,280 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense $332,636 58,272 65,556 7,284 Rent expense Amortization expenses-Patents Utilities expense 26,708 490,456 747,824 Gain on sale of equipment 9,712 $ 757,536 Net income $10,100 increase 11,650 increase Accounts payable Salaries payable Accounts receivable $11,800 decrease...
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