The following transactions apply to Brooks Co. for 2014, its first year of opera
ID: 2486533 • Letter: T
Question
The following transactions apply to Brooks Co. for 2014, its first year of operations. 1. Issued $180,000 of common stock for cash. 2. Provided $94,000 of services on account. 3. Collected $82,000 cash from accounts receivable. 4. Loaned $11,000 to Horne Co. on October 1, 2014. The note had a one-year term to maturity and an 8 percent interest rate. 5. Paid $34,000 of salaries expense for the year. 6. Paid a $3,500 dividend to the stockholders. 7. Recorded the accrued interest on December 31, 2014 (see item 4). 8. Uncollectible accounts expense is estimated to be 1 percent of service revenue on account
a. Show the effects of the above transactions in a horizontal statements model like the one shown below. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC). The letters NA indicate that an element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations and round your final answers to nearest whole number.)
b-1. Prepare the income statement for 2014. (Round intermediate calculations and final answers to nearest whole dollar amount.)
b-2. Prepare the balance sheet for 2014. (Round intermediate calculations and final answers to nearest whole dollar amount.)
b-3. Prepare the statement of cash flows for 2014. (Amounts to be deducted should be indicated with a minus sign.)
Explanation / Answer
Answer:a
Answer:b-1
Answer:b-2
Answer:b-3
Balance Sheet Income statement Statement of cash Flow Assets Equity Event Cash Net Accounts receivable Allowance Notes receivable Interest receivable Common stock Retained earnings Revenue Exp Net income 1 180000 NA NA NA NA 180000 NA NA NA NA 180000 FA 2 NA 94000 NA NA NA NA 94000 94000 NA 94000 NA 3 82000 -82000 NA NA NA NA NA NA NA NA 82000 OA 4 -11000 NA NA 11000 NA NA NA NA NA NA 11000 IA 5 -34000 NA NA NA NA NA -34000 NA 34000 -34000 34000 OA 6 -3500 NA NA NA NA NA -3500 NA NA NA 3500 FA 7 NA NA NA NA 220 NA 220 220 NA 220 NA 8 NA NA -940 NA NA NA -940 NA 940 -940 NA Total 213500 12000 -940 11000 220 180000 55780 94220 34940 59280Related Questions
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