On Jan. 1, 20x1, the cost of equipment purchase is 80000 with a useful life of 5yrs with no residual value, using a straight-line method.
On Jan. 1, 20x1 DEF Co. Have a capital balance of 1,500,000
b.At the beginning of the year, the entity acquired 2 cash registers for 30,000 each with a useful life of 5 years with no residual value
c. DEF Clothing purchase 5 pieces of a mannequin with an amount of 1,200 each
d. On Jan 5, 20x1 DEF entity purchased a delivery truck for 200,000
e. On Feb, 1, DEF co. acquired trademark from ABC Co. for a total cost of 120,000
On Feb. 20, 20x1, DEF owner contribute 250,000 cash
f. On March 5,20x1 Received a customer's check totaling 100000.
g. Cash on hand includes a 17000 customer check dated january 8, 20x2
h. On March 10,20x1, DEF co. established 10,000 petty cash fund.
i. Received cash from customer A amounting to 15,000.
j. Accounts receivable of 18000 is found to be doubtful of collection.
k. The 18000 doubtful account is deemed worthless.
l. 5000 of previously written off is subsequently recovered.
m. DEF co. purchase goods with an invoice price of 75000 on account on April 15, 20x1 w/ related shipping cost amounted to 3500.
The seller shipped the goods in April. 20, 20x1. DEF Clothing received the goods on April 22, 20x1, and settled the account on April 30,20x1
n. A customer returned goods with a sale price of 1000 and cost of 300.
o. On May,20x1, the entity purchased land for undetermined use for 450,000
On. May 20, 20x1, DEF Co. withdrew 20,000 cash
p. On July 3,20x1, use the land held for long-term capital appreciation for 300,000
q. On July 30,DEF clothing acquired a land amounting to 1000000 for future warehouse.
r. DEF Clothing acquired another furniture and fixtures for 17000 on cash.
s. On August 1,20x1 DEF clothing borrowed 2000000 to finance the construction of the warehouse with an interest of 7%.
By the end of the construction on Dec. 31, 20x1, DEF clothing settled the borrowed amount including the interest.
t. On August 15 customer acquired 500 clothes amounting 500 pesos each paid 50% in cash and promise to pay 50% with an interest of 10% on September 15,20x1.
u. The customer on August 15 paid 50% of his account.
On. Sept. 14, 20x1 DEF Co. owner withdraws 10,000 cash
v. On Sept. 28, 20X1 DEF Clothing obtained a loan from a bank amounting to 100,000 Repayment of the loan is due in 1 year, with the interest of 2%.
w. Bought packaging supplies on account amounted to 5200.
x. Unpaid salaries amounting to 2000.
y. ABC invested cash amounting to 3,500,000
z. Paid salaries for 2 employees amounting to 7000 each.
1. On October 31,20x1 DEF Clothing pays 25,000 (5,000 x 5 months) as rent in cash for the next 5 months.
2. Advertisement cost paid during December 20x1 with a total amount of 5,000
3. On November 1,20x1 DEF co. received a Meralco bill of 15,000 and paid it in cash
4. On May 31, 20x1 DEF entity had a sale of 1,000,000

Assume that all assets are acquired with a useful life of 5 years and no residual value. Supply a Statement of Cash Flow based on the transactions above.

Answer rating: 100% (QA)

Statement of Cash Flow For the Year Ended December 31 20x1 Operating ... View the full answer