Cordell Incorporated experienced the following events in Year 1, its first year of operation: 1. Received...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cordell Incorporated experienced the following events in Year 1, its first year of operation: 1. Received $52,000 cash from the issue of common stock. 2. Performed services on account for $80,000. 3. Paid a $5,200 cash dividend to the stockholders. 4. Collected $58,000 of the accounts receivable. 5. Paid $52,000 cash for other operating expenses. 6. Performed services for $16,000 cash. 7. Recognized $2,200 of accrued utilities expense at the end of the year. Required: a. & c. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows. In the Statement of Cash Flows column, use OA to designate operating activity, FA for financing activity, and IA for investing activity. Note: Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an Input - leave cells blank if there is no corresponding Input needed. Event Revenue Expense 1. Statement of Cash Flows IA 2. 3. 4. 5. 6. 7. b. Determine the amount of net income reported on the Year 1 income statement. Net income d. Determine the amount of cash flow from operating activities reported on the Year 1 statement of cash flows. Net cash flow from operating activities e. What is the balance of the retained earnings account that appears on the Year 1 balance sheet? Balance of retained earnings Cordell Incorporated experienced the following events in Year 1, its first year of operation: 1. Received $52,000 cash from the issue of common stock. 2. Performed services on account for $80,000. 3. Paid a $5,200 cash dividend to the stockholders. 4. Collected $58,000 of the accounts receivable. 5. Paid $52,000 cash for other operating expenses. 6. Performed services for $16,000 cash. 7. Recognized $2,200 of accrued utilities expense at the end of the year. Required: a. & c. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows. In the Statement of Cash Flows column, use OA to designate operating activity, FA for financing activity, and IA for investing activity. Note: Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an Input - leave cells blank if there is no corresponding Input needed. Event Revenue Expense 1. Statement of Cash Flows IA 2. 3. 4. 5. 6. 7. b. Determine the amount of net income reported on the Year 1 income statement. Net income d. Determine the amount of cash flow from operating activities reported on the Year 1 statement of cash flows. Net cash flow from operating activities e. What is the balance of the retained earnings account that appears on the Year 1 balance sheet? Balance of retained earnings
Expert Answer:
Answer rating: 100% (QA)
Since the image displays a list of transactions and questions related to accounting for Cordell Incorporated I will break down the answer for each part of the question a c Identify the events that res... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
A medical equipment company provides surgical equipment to Meritex Hospital. Several examining room tables costing $2500 each were charged to the outpatient facility department instead of the surgery...
-
Calculate the anion gap for a 58 year old insulin dependent diabetic woman who is admitted to the emergency room in a comatose state Na-135mmol/L K= 3.5 mmol/L CI-102 mmol/L HCO3-= 15mmol/L. Include...
-
If retailers and manufacturers are aware that consumers derive utility from "getting a good deal," they may be able to take advantage of this to increase their own profits. Can you find evidence that...
-
The particle in a spherical box has V = 0 for r b and V = for r > b. For this system: (a) Explain why = R(r)f(, ), where R(r) satisfies (6.17). What is the function f(, )? (b) Solve (6.17) for R...
-
The weights of checked bags on flights between San Francisco and Atlanta. State whether the data described are discrete or continuous and explain why?
-
Paula Company acquires 100% of the common stock of Shannon Company for $190,000 cash. On the acquisition date, Shannons ledger shows Common Stock $120,000 and Retained Earnings $70,000. Complete the...
-
How does MariaDB's storage engine architecture, featuring options such as InnoDB, MyRocks, and Aria, cater to diverse performance and scalability requirements within complex database environments,...
-
Steven wants to build a very simple tip calculator for whenever he goes eating in a restaurant. In his country, it's usual to tip 25% if the bill value is between 90 and 500. If the value is...
-
Of all the business innovations explorer Marco Polo discovered in thirteenth century China, he was perhaps most surprised by the use of paper money. It was worth dozens of times the weight of the...
-
In a typical organisation, business units act independently of each other and make decisions based on information that is relevant to them. For example, the sales and marketing department might...
-
What are four good sources of price information about construction materials?
-
Using the information from BE18-5, and assuming that the $40,000 difference is the only difference between Mazur's accounting income and taxable income, prepare the journal entry(ies) to record the...
-
An efficient supply chain is a prize worth striving for. According to Accenture, the consultancy firm, supply chain leadership can increase a companys market capitalisation by between 7 and 26 per...
-
In Part I, next to each item listed, you will identify which statement the item would appear. You will need to determine whether it would appear on the income statement (I), balance sheet (B), or...
-
D Which of the following is considered part of the Controlling activity of managerial accounting? O Choosing to purchase raw materials from one supplier versus another O Choosing the allocation base...
-
There are 24,627 species of fish on Earth. Decide whether the statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain clearly.
-
An American Airlines agent tells you that you must pay a surcharge because your checked bag weighs 23.018 kg, which exceeds the limit of 23 kg, and that theres no doubt that the scale is correct...
-
The Jenkins supermarket manager claims that the scanning errors on purchased items are random, and about half of the errors are in favor of the supermarket. Decide whether the statement makes sense...
Study smarter with the SolutionInn App