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@ Chaoter 6Quiz-201 730 x G advantages in simply ti x/ connect C | connect.htrri I https://new cor Down nad music, Secure ::: Apps Ro k marks m- Ru utemame Rlackboard earn The Ricklist Watch O "atm Ma es Onlir HRU Port -Top 100 M ies of A How to Dr etNa e Tool TH2 w r Rase l my it k Chap 7 Probs 26 & 30 G Help Save & Exit Submit Check my work Malco Enterprises issued $15,500 of common stock when the company was started. In addition, Malco borrowed $47,000 from a local bank on July 1, 2018. The note had a 6 percent annual Interest rate and a one-year term to maturity. Malco Enterprises recognizecd $78,000 of revenue on account in 2018 and $91,800 of revenue on account in 2019. Cash collections of accounts receivable were $63,500 in 2018 and $73,700 in 2019. Malco paid $44,500 of other operating expenses in 2018 and $50,500 of other operating expenses in 2019. Malco repaid the loan and interest at the maturity date. 10 points Required cBook a. Organlze the Information in accounts under an accounting equation. b. What amount of net cash flow from operating activities would be reported on the 2018 cash flow statement? c. What amount of interest expense would be reported on the 2018 income statement? d. What amount of total llabllities would be reported on the December 31, 2018, balance sheet? e. What amount of retained earnings would be reported on the December 31, 2018, balance sheet? f. What amount of cash flow from financing activities would be reported on the 2018 statement of cash flows? g. What amount of Interest expense would be reported on the 2019 Income statement? h. What amount of cash flows from operating activities would be reported on the 2019 cash flow statement? i. What amount of assets would be reported on the December 31, 2019, balance sheet? Referencrs Complete this question by entering your answers in the tabs below Req A Req B to I Prev 1of 51 Next > Hill O Type here to search 007 PM 11/16/2017Explanation / Answer
Effects of Events on the Accounting Equation
2018 and 2019
b. Net cash flow from operating activities 2018 = Collection from AR - Payment for other operating expenses
= $63500 - $44500 = $19000
c. Interest expense 2018 = $1410
d. Total liabilities 2018 = $47000 + 1410 = $48410
e. Retained earnings 2018 = $32090
f. Net cash flow from financing activities 2019 = Repayment of notes payable = -47000
g. Interest expense 2019 = $1410
h. Net cash flow from operating activities 2018
= Collection from AR - Payment for other operating expenses - Payment of interest
= $73700 - 50500 - 2820
= $20320
i. Amount of assets to be reported on 2019 balance sheet = $54880 + 32600 = $87480
Event Assets = Liabilities + Stockholder's equity Account titles/Retained earnings Cash + AR Notes
payable + Interest
payable Common
Stock + Retained
Earnings 2018 1. 15500 15500 NA 2. 47000 47000 NA 3. 78000 78000 Sales revenue 4. 63500 -63500 NA 5. -44500 -44500 Operating expenses 6. 1410 -1410 Interest expense End. Bal. 81500 + 14500 = 47000 + 1410 + 15500 + 32090 Income summary 2019 Beg. Bal. 81500 + 14500 = 47000 + 1410 + 15500 + 32090 NA 1. 91800 91800 Sales revenue 2. 73700 -73700 NA 3. -50500 -50500 Operating expenses 4. 1410 -1410 Interest expense 5. -49820 -47000 -2820 NA End. bal. 54880 + 32600 = 0 + 0 + 15500 + 71980 NA
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