Recording Transactions (Including Adjusting and Closing Entries), Preparing Fina
ID: 2531342 • Letter: R
Question
Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratio Analysis Ben and Kelly Perry began operations of their Roof repair company (Perry Roofing, Inc.) on January 1, 2015. The annual reporting period ends December 31. The trial balance on January 1, 2016, was as follows Debit Credit Cash Accounts Receivable 0,000 4,000 8,000 es ent Accumulated Depreciation (on Other assets (not detailed to sim Accounts Payable Notes Payable Wages payable Interest Pavable Income Taxes Payable Unearned revenue Common Stock (60,000 s Additional Paid-in Capital Retained Earnings Service revenue 9,000 12,000 6,000 9,000 4,000 s, S0.10 par value reciation se er Wage E Interest Ex Income Tax Remaining expense Totals se (not detailed to sim 31,000 31,000Explanation / Answer
5 )
transcation
activity
Increase /( decrease) in cash
explanations
a
O
$30,000
cash has increased by $30,000 , note payable less than one year is current liabilities and any changes in current liabilities is shown in operating activities
b
I
($18,000)
cash has decreased by $ 18,000
c
F
$5,000
cash inflow of $5000 , by sellling shares
d
O
$57,000
cash profits earned from operations of the company
e
O
($28,000)
operting expenses paid in cash
f
O
($3,000)
supplies is operating expenses
g
O
$8,000
Accounts receivable is sales made on credit , sales is normally operating actibities and cash received from Accounts receivable
h
O
($11,000)
paid for supplies which is operaing activities to creditors
i
no entry
there is no cash ouflow
j
O
$3,000
cash inflow of $3000 , unearned income is shown current liabilities andd increase in current liabilities is shown as cash inlow
K
F
($10,000)
cash dividend payment is financing activity
transcation
activity
Increase /( decrease) in cash
explanations
a
O
$30,000
cash has increased by $30,000 , note payable less than one year is current liabilities and any changes in current liabilities is shown in operating activities
b
I
($18,000)
cash has decreased by $ 18,000
c
F
$5,000
cash inflow of $5000 , by sellling shares
d
O
$57,000
cash profits earned from operations of the company
e
O
($28,000)
operting expenses paid in cash
f
O
($3,000)
supplies is operating expenses
g
O
$8,000
Accounts receivable is sales made on credit , sales is normally operating actibities and cash received from Accounts receivable
h
O
($11,000)
paid for supplies which is operaing activities to creditors
i
no entry
there is no cash ouflow
j
O
$3,000
cash inflow of $3000 , unearned income is shown current liabilities andd increase in current liabilities is shown as cash inlow
K
F
($10,000)
cash dividend payment is financing activity
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