Question

Q1. Record the following transaction journal entries for September directly into the T-accounts above.
TJE #1 Bill customers for deliveries that total $2,000 during September.
TJE #2 For accounts receivable, the ending balance on September 30 is $100. Prepare the TJE for cash received from customers.
TJE #3 Employees earn $700 in salaries during September. Record as Salaries Payable.
TJE #4 For Salaries Payable, the ending balance on September 30 is $150. Prepare the TJE for cash paid to employees.
Q2. Record the adjusting journal entry for September directly into the T-accounts above,
AJE #1 Record September depreciation expense for the Delivery Van, which has a 4-year (48 month) life, using straight-line depreciation.
Q3. Compute the ending balance for each account, recording it as a debit or credit balance in the General Ledger above. These ending balances would appear on the (unadjusted / ________/ post-closing) trial balance and (________ / not be) reported on the financial statements.
What amounts would be recorded on the September balance sheet?
REarnings ________Total Assets ________Total Liabilities ________ SEquity ________
Q4. Using amounts from the General Ledger on the previous page (A) prepare the Income Statement and (B) prepare the Operating Activity section of the Statement of Cash Flows below.
Q5. What adjustments are needed to get from accrual-based net income to cash-based Net Cash from Operating Activities?
a. The difference between (________/ cash-) based “Revenue” reported on the (________ / Statement of Cash Flows) and (accrual- / ________) based “Cash received from customers” reported on the (Income Statement / ________) is ________. This adjustment is (added / ________). Record in the Adjustments Column.
b. During September, Accounts Receivable had a beginning balance of ________ and an ending balance of ________, a difference of ________. This difference will (________/ sometimes) be the same as the amount in the Adjustments Column.
c. The difference between (________/ cash-) based “Revenue” reported on the (________ / Statement of Cash Flows) and (accrual- / ________) based “Cash received from customers” reported on the (Income Statement / ________) is ________. This adjustment is (________/ subtracted). Record in the Adjustments Column above.
d. During September, Salaries Payable had a beginning balance of $zero and an ending balance of ________a difference of ________. This difference will (________/ sometimes) be the same as the amount in the Adjustments Column.
e. Complete the Adjustments Column for Depreciation in the chart above.
Q6. The indirect method of preparing the Statement of Cash Flows reconciles accrual-based Net Income with cash-based Net Cash from Operating Activities (NCOA). Use amounts from the Adjustments Column above to prepare the Operating Activities section of the Statement of Cash Flows below.
Q7. Amounts from the Adjustments Column are used to reconcile accrual-based Net Income with cash-based Net Cash from Operating Activities, which is the purpose of the (direct / ________) method.
Q8. In the Statement of Cash Flows, operating activities may be reported using the (direct / indirect /________) method, investing activities maybe reported using the (________/ indirect / either) method, and financing activities may be reported using the (________/ indirect / either ) method.


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  • CreatedSeptember 17, 2015
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