Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) The following events happened at Handsome Hounds Grooming Company in its first year of business:

a) To establish company, two owners contributed a total of $50,000 in exchange for common stock.

b) Grooming service revenue for first year amounted to $150,000 of which $40,000 was on account.

c) Customers owe $10,000 at the end of year from services given on account.

d) At the starting of year, a storage building was rented. Company was needed to sign three-year lease for $12,000 per year and make $2,000 refundable security deposit. First year\'s lease payment and security deposit were paid at beginning of the year.

e) At beginning of the year, company bought a patent at cost of $100,000 for revolutionary system to be used for dog grooming. Patent is expected to be useful for 10 years. Company paid 20% down in cash and signed four-year note at bank for remainder.

f) Operating expenses, comprising amortization of patent and rent on storage building, totaled $80,000 for first year. No expenses were accrued or unpaid at the end of year.

g) Company declared and paid a $20,000 cash dividend at the end of first year.

problem:

Create a statement of cash flows for first year, using direct method in operating activities section.

Did company generate more or less cash flow from operations than it earned in net income? Describe why there is a difference.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920878

Have any Question? 


Related Questions in Accounting Basics

Assignmentcarol is a single mother who owns a wholesale

Assignment Carol is a single mother who owns a wholesale auto parts distributorship. The business is organized as a sole proprietorship. Her business has advanced, and she can no longer devote the time necessary to do he ...

Niagular corp just reported a net income of 8500000 amp its

Niagular Corp. just reported a net income of $8,500,000 & its current stock price is $25.75 per share. Niagular Corp. is forecasting an increase of 25% for its net income next year, but it also expects it will have to is ...

Assignmentto write discussion post min 350 words for each

Assignment To write discussion post. Min 350 words for each task. Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 word ...

Assignmentthis assignment has 2 parts 1000 10 word theory

Assignment This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory. The assignment must be typed, use Arial font, 12, to avoid plagiarism, make sur ...

Accounting systems and assurance assessment internal

Accounting Systems and Assurance Assessment: Internal Control and information quality Accounting students learn how to process, analyse and use accounting information. It is also necessary to learn what contributes to th ...

Accounting theory and contemporary issues individual case

Accounting Theory and Contemporary Issues Individual case study Assignment- Assessment Description - Learning Outcome:  Research and argue a position in regard to a contemporary issue in the accounting profession. Evalua ...

Data for the year-end adjustments for al geromes courier

Data for the year-end adjustments for Al Gerome's Courier Services are as follows: Insurance expired during the year ($950.00) Depreciation of Equipment for the year ($9,860.00) Salaries accrued at December 31 ($5100.00) ...

Q1 in each of the following independent situations

Q1: In each of the following independent situations, determine how much should be included in Burton's gross estate less than 2042 as to the various life insurance policies involved. Assume that none of the policies are ...

- discuss the pros and cons of leasing vs purchasing a

- Discuss the pros and cons of leasing vs purchasing a fleet of business vehicles for a client's business, (assume the loan rate on purchasing the vehicles is 6% and the implicit interest rate in the lease is also 6%). - ...

Assignmentsec 10k link Assignment SEC 10K Link:

Assignment SEC 10K Link: https://www.sec.gov/Archives/edgar/data/908255/000090825516000077/a10k12312015.htm Position: 358 Income Statement: 53 Balance Sheet: 52 Statement of Stockholders Equity: 56 Statement of Cash Flow ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen