The following accounts and corresponding balances were drawn from Avia Companys Year 2 and Year 1 year-end
Question:
The following accounts and corresponding balances were drawn from Avia Company’s Year 2 and Year 1 year-end balance sheets:
During the year, $46,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 was $18,000.
Required
Based on this information alone, prepare the operating activities section of the statement of cash flows assuming the direct approach is used.
Account Title Year 2 Year 1 Unearned revenue Prepaid rent $7,600 $6,200 3,600 2,400
Step by Step Answer:
Reconciliation of Unearned Revenue Beginning balance 6200 Increase due to collecting cash in ad...View the full answer
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
Related Video
Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a \"prepayment\" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
Students also viewed these Business questions
-
The following accounts and corresponding balances were drawn from Osprey Companys 2014 and 2013 year-end balance sheets: During the year, $84,000 of unearned revenue was recognized as having been...
-
The following accounts and corresponding balances were drawn from Pixi Companys 2014 and 2013 year-end balance sheets: The following accounts and corresponding balances were drawn from Pixi Companys...
-
The following accounts and corresponding balances were drawn from Geneses Companys 2014 and 2013 year-end balance sheets: The 2014 income statement is shown below: Income Statement Sales .............
-
Both high-income and low-income employees are covered by cafeteria plans. Under such plans, all employees may select from a list of non-taxable fringe benefits or they may elect to receive cash in...
-
Create a scenario where external auditors determined that a company's internal controls were deficient, but such a deficiency might not mean that a material weakness existed. Ascertain the impact on...
-
Why do you think certain capital budgeting techniques are used more often in some countries than in others? If NPV is theoretically the best methodology and most managers of large European...
-
A \(45^{\circ}\) off-axis rail shear test specimen of an orthotropic lamina is shown in Figure 10.38. Attached to the specimen are three strain gages that measure the normal strains...
-
Modern Company acquires the net assets of Frontier Company for $1,300,000 on January 1, 2011. A business valuation consultant arrives at the price and deems it to be a good value. Part A. The...
-
A car is designed to get its energy from a rotating flywheel in the shape of a uniform, solid disk of radius 0.550 m and mass 560 kg. Before a trip, the flywheel is attached to an electric motor,...
-
Richard chooses technique 0 and 2 requiring 10+10-20 efforts and provising 10+11=21 benefits. Hence, 21 is returned as the output Example 2: input1: 3 input2: (10,10,10,10) input3: (10,11,12,15)...
-
Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shims Year 2 and Year 1 year-end balance sheets. The...
-
The following accounts and corresponding balances were drawn from Marinelli Companys Year 2 and Year 1 year-end balance sheets: The Year 2 income statement is shown next: Income Statement Sales...
-
What is the magnitude of the electric force between an electron and a proton in a hydrogen atom? Assume they are point charges separated by 0.050 nm.
-
Which plants produce pollen? What strategies do plants use for pollination? What strategy do most flowering plants use?
-
We have mentioned the surface-area-to-volume ratio in the contexts of cell size and thermoregulation in mammals. Explain how the surface-area-to-volume ratio also affects the size and shape of flying...
-
Lets explore water transport in plants. Place a few celery stalks in a beaker with some water. Add a few drops of blue food coloring to the water, and stir gently. Check the celery every few hours,...
-
Many snakes can survive eating just once every few weeks. Why cant birds do this?
-
Chemical dispersants are sometimes used to break up a large oil slick into tiny droplets. Explain the advantages of this strategy, using the concepts of surface area and volume in your answer. What...
-
1. Which laws did the court consider in deciding this case? Is there a conflict between the laws? 2. Was it critical to the courts determination that the franchise agreement contained language...
-
Briefly describe the following types of group life insurance plans: a. Group term life insurance b. Group accidental death and dismemberment insurance (AD&D) c. Group universal life insurance d....
-
Jupiter Co. issued bonds with a face value of $150,000 on January 1, 2016. The bonds had a 6 percent stated rate of interest and a five-year term. The bonds were issued at face value. Required a....
-
On January 1, 2016, Kramer Co. borrowed cash from First City Bank by issuing a $90,000 face value, three-year term note that had a 7 percent annual interest rate. The note is to be repaid by making...
-
Mott Company has a line of credit with Bay Bank. Mott can borrow up to $400,000 at any time over the course of the 2016 calendar year. The following table shows the prime rate expressed as an annual...
-
The Power of Trade and Comparative Advantage: Work It Out 3 ? Here's another specialization and exchange problem. This problem is wholly made-up, ? so that you won't be able to use your intuition...
-
Government spending as a fiscal policy tool is used to: A) ?Decrease the national debt B) ?Directly stimulate economic activity by increasing demand C) ?Reduce inflation D) ?Lower interest rates
-
Automobile demand has fallen during a recent recession, and Ana has been laid off from her job on the assembly line. Rajiv recently lost his job as a waiter at a local restaurant. A recent increase...
Study smarter with the SolutionInn App