Computing Amounts on Financial Statements and Finding Financial Information
The following information was provided by the records of Elm Tree Apartments (a corporation) at the end of the annual fiscal period, December 31, 201 I:
Rent
a. Rent revenue collected in cash during 2011 for occupancy in 2011, $492,000.
b. Rent revenue earned for occupancy in December 2011; not collected until 2012, $16,000.
c. In December 2011. rent revenue collected in advance for January 2012, $12,000.
Salaries
d. Cash payment in January 2011 to employees for work in December 2010 (accrued in 2010), $4.000.
e. Salaries incurred and paid during 2011, $68,000.
f. Salaries earned by employees during December 2011 that will be paid in January 2012, $3.000.
g. Cash advances to employees in December 2011 for salaries that will be earned in January 2012, $1, 500.
Supplies
h. Maintenance supplies on January 1, 2011 (balance on hand), $3,000.
i Maintenance supplies purchased for cash during 2011, $8,000.
j. Maintenance supplies counted on December 31, 2011, $1,850.
Required:
For each of the following accounts, compute the balance to be reported in 2011, the statement the account will be reported on, and the effect (direction and amount) on cash flows (+ for increases cash and – for decreases cash).(Hint: Create T-accounts to determine balances.)
Account | 2011 Balance | Financial Statement | Effect on Cash Flows |
1. Rent revenue |
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2. Salary expense |
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3. Maintenance supplies expense |
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4. Rent receivable |
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5. Receivables from employees |
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6. Maintenance supplies |
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7. Unearned rent revenue |
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8. Salaries payable |
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