Question

The following information was provided by the records of Liberty Circle Apartments (a corporation) at the end of the annual fiscal period, December 31, 2014:

Rent
a. Rent revenue collected in cash during 2014 for occupancy in 2014, $500,000.
b. Rent revenue earned for occupancy in December 2014; not collected until 2015, $10,000.
c. In December 2014, rent revenue collected in advance for January 2015, $14,000.

Salaries
d. Cash payment in January 2014 to employees for work in December 2013 (accrued in 2013), $6,000.
e. Salaries incurred and paid during 2014, $70,000.
f. Salaries earned by employees during December 2014 that will be paid in January 2015, $3,000.
g. Cash advances to employees in December 2014 for salaries that will be earned in January 2015, $2,000.

Supplies
h. Maintenance supplies on January 1, 2014 (balance on hand), $7,000.
i. Maintenance supplies purchased for cash during 2014, $8,000.
j. Maintenance supplies counted on December 31, 2014, $2,000.

Required:
For each of the following accounts, compute the balance to be reported in 2014, the statement the account will be reported on, and the effect (direction and amount) on cash flows ( 1 for increases cash and 2 for decreasescash).


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  • CreatedJuly 01, 2014
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