Balance Sheet June 30th, Year 5 Assets Liabilities and Equity Cash Accounts receivables 34,000 10,000 Accounts...

  

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Balance Sheet June 30th, Year 5 Assets Liabilities and Equity Cash Accounts receivables 34,000 10,000 Accounts Payable 19,000 Wages Payable 4,000 Inventory 60,000 Income Tax Payable 1,000 Prepaid Insurance 4,000 Notes Payables 80,000 Capital Assets 200,000 Common Shares 100,000 Accumulated depreciation (40,000) Retained Earnings 64,000 Total Assets 268,000 Total Liabilities and Equity 268,000 The following are all transactions that happened during Year 6: Made all sales on account of $259,100 Collected accounts receivable of $257,040 Purchased merchandise on account of $134,000 Determined cost of goods sold was $140,000 Paid accounts payable (for merchandise purchased) of $143,000 Paid wages to employees of $52,500 Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6. Paid insurance premium of $18,000 to extend coverage for three years. Allocated $5,000 of prepaid insurance to insurance expense. Recorded Year 6 total income tax expense (and income tax payable) of $13,000 Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes). Depreciation for the year $10,000 Required 1: What is the amount of Cash received from customers? Required 2: How much is the net income (loss) of the year 6? Required 3: What is the amount of cash generated (used) by accounts receivables? Required 4: What is amount of cash generated (used) by Operations in Year 6? Required 5: What is ending balance of Cash at the end of Year 6? Required 6: What is ending balance of Accounts Receivables at the end of Year 6? Required 7: What is ending balance of Retained Earnings at the end of Year 6? Balance Sheet June 30th, Year 5 Assets Liabilities and Equity Cash Accounts receivables 34,000 10,000 Accounts Payable 19,000 Wages Payable 4,000 Inventory 60,000 Income Tax Payable 1,000 Prepaid Insurance 4,000 Notes Payables 80,000 Capital Assets 200,000 Common Shares 100,000 Accumulated depreciation (40,000) Retained Earnings 64,000 Total Assets 268,000 Total Liabilities and Equity 268,000 The following are all transactions that happened during Year 6: Made all sales on account of $259,100 Collected accounts receivable of $257,040 Purchased merchandise on account of $134,000 Determined cost of goods sold was $140,000 Paid accounts payable (for merchandise purchased) of $143,000 Paid wages to employees of $52,500 Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6. Paid insurance premium of $18,000 to extend coverage for three years. Allocated $5,000 of prepaid insurance to insurance expense. Recorded Year 6 total income tax expense (and income tax payable) of $13,000 Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes). Depreciation for the year $10,000 Required 1: What is the amount of Cash received from customers? Required 2: How much is the net income (loss) of the year 6? Required 3: What is the amount of cash generated (used) by accounts receivables? Required 4: What is amount of cash generated (used) by Operations in Year 6? Required 5: What is ending balance of Cash at the end of Year 6? Required 6: What is ending balance of Accounts Receivables at the end of Year 6? Required 7: What is ending balance of Retained Earnings at the end of Year 6?

Answer rating: 100% (QA)

Required 1 Cash Received from Customers Calculation Cash received from customers Accounts receivable collected Sales on account Sales returns and allo... View the full answer