Question: Refer to E3 15 a Received a 600 deposit

Refer to E3– 15.
a. Received a $ 600 deposit from a customer who wanted her piano rebuilt.
b. Rented a part of the building to a bicycle repair shop; received $ 820 for rent in January.
c. Rebuilt and delivered five pianos to customers who paid $ 18,400 in cash.
d. Received $ 7,200 from customers as payment on their accounts.
e. Received an electric and gas utility bill for $ 520 to be paid in February.
f. Ordered $ 960 in supplies.
g. Paid $ 2,140 on account to suppliers.
h. Received from Ella Sbrocchi, the major shareholder, a $ 920 tool (equipment) to use in the business in exchange for the company’s shares.
i. Paid $ 15,000 in wages to employees for work in January.
j. Declared and paid a cash dividend of $ 2,600.
k. Received and paid for the supplies ordered in (f).
1. Use the ending balances in the T- accounts in E3– 15 to prepare the following:
a. A statement of earnings for January 2014, in good form.
b. The operating activities section of the statement of cash flows for January 2014, in good form. 2. Explain the difference between the net earnings and the cash flow from operating activities computed in (1).

View Solution:

Sale on SolutionInn
  • CreatedAugust 04, 2015
  • Files Included
Post your question