Have you previously taken and completed BUS 212 here at SUNY Buffalo State? Yes

Question

Have you previously taken and completed BUS 212 here at SUNY Buffalo State? Yes Griffin Corporation experienced the following accounting events during 2015: No 1. Began operations on January 2" when it acquired S30 cash by issuing shares of common stock 2. Provided services to its clients in January and February, $18 on account. 3. On March 1"t, received $36 from client for services to be performed over the next year. 4 Incurred operating expenses in 2015 of $17, and paid them during 2015 5. Paid a $3 cash dividend to stockholders 6. Collected $15 from customers on account 7. Performed $38 services to customers on credit 8. On April 1", paid $12 for insurance policy that provides coverage for one year. 9. Purchased $3 supplies on credit 10. Acquired land for $10 cash 11. Received $35 from customers on account 12. Paid $36 operating expenses (rent, salaries, etc) in 2015 13. December salaries unpaid at year end were $5 14. Unused supplies at year end were $1 15. December utilities were $5 and were unpaid at 12/31/15 16. Paid $2 on accounts payable on December 1st 17. Market value of land at 12/31/15 was $ 1. Adjust any accounts that would need to be updated Requirements: Analyze each event, and record in the financial statement model, determine adjusted balances at year end, and answer the following questions. 1. Total assets at Dec.31st 2 Post closing balance retained eamings 3. Net cash flow- Financing activities 4. Net cash flow- Investing activities . Accounts receivable year end balance 6. Unearned revenue at year end 7. Insurance expense 8. Ending balance Cash at 12/31/15 9. Supplies at 12/31/15 10, Year end balance Prepaid insurance

Explanation / Answer

Event Balance Sheet Income Statement Cashflow Cash A/R PP Supplies Land A/P Unearned revenues Common stock Retained Earnings Revenue Salary Expense Other Operating Exp Supplies exp Insurance Exp Utility Exp Net Income Amount Type 1 30 30 0 30 Financing Activity 2 18 18 18 0 3 36 36 0 36 Operating Activity 4 -17 17 -17 -17 Operating Activity 5 -3 -3 0 -3 Financing Activity 6 15 -15 0 15 Operating Activity 7 38 38 38 0 8 -12 3 9 -9 -12 Operating Activity 9 3 3 -3 0 10 -10 10 0 -10 investing activity 11 35 -35 0 35 Operating Activity 12 -36 36 -36 -36 Operating Activity 13 5 5 -5 0 14 1 -1 1 0 15 -5 5 -5 -5 Operating Activity 16 -2 -2 0 -2 Operating Activity 17 -4 4 -4 0 18 -22 22 31 6 3 1 6 6 36 30 -25 56 41 21 2 9 5 0 31 Total Assest = 31+6+3+1+6 = $47 Pre closing Balance Retained Earnings = $-3 Net cash flow from Financing activities = 30-3 = $27 Accounts receivable Year end balance = $6 Unearned Revenue at year end = $ 36 Insurance expense =$9 Ending cash Balance = $31 Supplies = $ 2 Year end balance Prepaid Insurance = $ 3

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