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Homework answers / question archive / Waddell Company had the following balances in its accounting records as of December 31, 2018: Annet Cash Accounts Receivable Land Totale 55,000 45,000 25

Waddell Company had the following balances in its accounting records as of December 31, 2018: Annet Cash Accounts Receivable Land Totale 55,000 45,000 25

Accounting

Waddell Company had the following balances in its accounting records as of December 31, 2018: Annet Cash Accounts Receivable Land Totale 55,000 45,000 25.000 $125,000 LIATT. and Eqalty ACCOUNT Payable Comon stock Retained Warnings 22,000 87.600 16.000 $125,000 1 1 Joly The following accounting events apply to Waddell Company's 2019 fiscal year: Jan. 1 Acquired $40,000 cash from the fasue of common stock reb. Paid $5,100 cash in advance for a one-year lease for office space. MAT Pald a $1,900 cash dividend to the stockholders. April 1 Purchased additional land that cost $25,000 cash. May Received $7,800 cash in advance as a retainer for services to be Made a cash payment on accounts payable of $20,000. perfomed monthly over the coming year, Sept. 1 Sold land for $22,000 cash that had originally cost $22,000. Oct. 1 Purchased $940 of supplies on account. Dee. 31 Earned $65,000 of service revenue on account during the year. 31 Received cash collections from accounts receivable amounting to $63,000. 31 Incurred other operating expenses on account during the year that mounted to $12,000. 31 Recognized accrued salaries expense of $5,000. 31 Had $150 of supplies on hand at the end of the period. 31 The land purchased on April 1 had a market value of $34.000. 31 Recognized $129 of accrued interest revenue. Required Based on the preceding Information, answer the following questions for Waddell Company. All questions pertain to the 2019 financial statements. (Hint Enter Items in general ledger accounts under the accounting equation before answering the questions.) a. What two additional adjusting entries need to be made at the end of the year? b. What amount would Waddell report for land on the balance sheet? c. What amount of net cash flow from operating activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.) d. What amount of rent expense would be reported on the income statement? (Do not round Intermediate calculations.) e. What amount of total liabilities would be reported on the balance sheet? 1. What amount of supplies expense would be reported on the income statement? g. What amount of unearned revenue would be reported on the balance sheet? (Do not round intermediate calculations.) h. What amount of net cash flow from Investing activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.) 1. What amount of total expenses would be reported on the income statement? (Do not round Intermediate calculations.) What total amount of service revenue would be reported on the income statement? (Do not round Intermediate calculations.) k. What amount of cash flows from financing activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.) 1. What amount of net income would be reported on the income statement? (Do not round Intermediate calculations.) m. What amount of retained eamings would be reported on the balance sheet? (Do not round Intermediate calculations.)
JO calculation) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Accounting Equation ReqA Req B to M Refer the income statement, cash flow Statement, balance sheet and answer question B to M. b. s 28.000 C. d. IS 03 $ 4,675 $ 23,840 @ IS 790 $ 3.900 @ If Land Net cash flow from operating activities Rent expense Total liabilities Supplies expense Unearned revenue Net cash flow from investing activities Total expenses Service revenue Cash flows from financing activities Net Income 9 h. Is OX S 0 is 47.000 is OS IS 143 800 $ 60,654 k mi Retained earnings Prey

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Accounting Equation for the transactions              
  Assets= Liabilities+ Equity  
  Cash Acc.Rec. Prepaid rent Supplies Acc. Int. Land Acc.Pay. Unearn.Rev Acc. Sal. Comm.St. Ret.Earn.  
31-Dec-18 55000 45000       25000 22000     87000 16000  
1-Jan 48000                 48000   Issue of common stock for cash
1-Feb -5100   5100                 One-yr.rent paid in advance
1-Mar -1900                   -1900 Cash dividend
1-Apr -25000         25000           Cash purchase of land
1-May -20000           -20000         Cash paid for A/cs payable
1-Jul 7800             7800       Service fees recd. In advance for 12 mths.
1-Sep 22000         -22000           Cash sale of land
1-Oct       940     940         Purchase of supplies on a/c
31-Dec   45000                 45000 Service revenue earned for the yr.
  63000 -63000                   Cash collected from a/cs receivables
              12000       -12000 Opg. Expenses incurred on a/c
                  5000   -5000 Accrued salaries
        -790             -790 Adj. entry for Supplies expense
          129           129 Accrued interest
Addl.Adj.     -4675               -4675 Expensing the prepaid rent
J/Es               -3900     3900 Service revenue unearned, earned
Total 143800 27000 425 150 129 28000 14940 3900 5000 135000 40664  
Total         Assets 199504 199504 L & eq.        
a.Additional Adj. JE s required Debit Credit
1. Rent expense 4675  
Prepaid rent   4675
(5100/12*11)    
     
2.Unearned Service revenue 3900  
Service revenue   3900
(7800/12*6)    
Answers  
b. Land 28000
c. Net cash flow from operating activities(Ref. wkgs.) 45700
d. Rent expense 4675
e. Total Liabilities(14940+3900+5000) 23840
f.Supplies expense 790
g. Unearned Service revenue 3900
h. Net cash flow from Investing activities(-25000+22000) -3000
i.Total expenses(12000+5000+790+4675) 22465
j.Service revenue(45000+3900) 48900
k.Cash flows from Financing activities(48000-1900) 46100
l.Net Income(48900+129-22465) 26564
m.Retained Earnings(Last column) 40664
Wkgs.  
c.CFO(Indirect)  
Net income 26564
Dec in a/r 18000
Inc. in prepaid rent -425
Inc. in supplies inv. -150
Inc. in int. accrued -129
Dec.in A/P -7060
Inc.in Unearn. Serv. 3900
Inc. in acc. Sal. 5000
Cash from operations 45700
   
CFO(direct)  
Cash recd. from customers 63000
cash paid to suppliers -20000
Prepaid rent -5100
Unearned revenue 7800
Cash from operations 45700