New Magazine Company entered into the following transactions during 2012:
a. New Magazine Company started as a corporation with a $9,650 cash contribution from the owners in exchange for common stock.
b. The company purchased supplies for $1,000 with cash and used all of them.
c. Advertising revenues, all on account, amounted to $17,625.
d. Cash collections of accounts amounted to $8,175.
e. On October 15, 2012, the company paid $4,050 in advance for an insurance policy that does not go into effect until 2013.
f. The company declared and paid dividends of $575.

Put each of the transactions in an accounting equation worksheet. Then, answer the following questions:
1. What is the amount of net cash from financing activities for the year ended December 31, 2012?
2. What amount of total assets would appear on the December 31, 2012, balance sheet?
3. What amount of net income would appear on the income statement for the year ended December 31, 2012?
4. What is the amount of retained earnings as of December 31, 2012?

  • CreatedSeptember 01, 2014
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