The income statement and a schedule reconciling cash flows from operating activi
ID: 2590356 • Letter: T
Question
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in millions) for Mike Roe Computers.
Provide the summary journal entry which shows the cash flow for each of the following for Mike Roe Computers during the reporting period: received from customers, paid to suppliers, paid to employees, paid for interest, paid for insurance, paid for income taxes. ((If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
1
Record the summary journal entry showing cash received from customers during the reporting period.
2
Record the summary journal entry showing cash paid to suppliers of goods during the reporting period.
3
Record the summary journal entry showing cash paid to employees during the reporting period.
4
Record the summary journal entry showing cash paid for interest during the reporting period.
5
Record the summary journal entry showing cash paid for insurance during the reporting period.
6
Record the summary journal entry showing cash paid for income taxes during the reporting period.
7
Prepare the cash flows from operating activities section of the statement of cash flows (direct method).
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in millions) for Mike Roe Computers.
Explanation / Answer
Date/Sr.No Account title & Explanation Debit Credit Amount in $ Amount in $ 1 Cash 155.3 Accounts receivable 155.3 To record the cash received from customers 2 Accounts Payable 87.1 Cash 87.1 To record the cash paid to supplier of goods 3 Salaries Expense 17.1 Cash 17.1 To record the cash paid to employees 4 Interest Expense 3.05 Cash 3.05 To record the cash paid towards interest. 5 Insruance expense 10.1 Cash 10.1 To record the cash paid towards Insurance 6 Income tax expense 6.65 Cash 6.65 To record the cash paid towards income taxes Cash flow from operating activities(under Direct method) Receipts from customer 155.3 Less Payments towards Supplier for goods -87.1 Salaries -17.1 Insurance -10.1 Income tax -6.65 Interest -3.05 Cash flow from operating activites 31.3
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