accouting 453108
Aug 29, 2021 | Uncategorized
| Oaks Company had the following balances in its accounting records as of December 31, 2009: |
| Assets |
Claims |
| Cash |
$61,000 |
Accounts Payable |
$25,000 |
| Accounts Receivable |
45,000 |
Common Stock |
90,000 |
| Land |
27,000 |
Retained Earnings |
18,000 |
|
|
|
|
| Totals |
$133,000 |
|
$133,000 |
|
|
|
|
| The following accounting events apply to Oaks’s 2010 fiscal year: |
| Jan. |
1 |
Acquired an additional $70,000 cash from the issue of common stock. |
| April |
1 |
Paid $6,600 cash in advance for a one year lease for office space. |
| June |
1 |
Paid a $3,000 cash dividend to the stockholders. |
| July |
1 |
Purchased additional land that cost $25,000 cash. |
| Aug. |
1 |
Made a cash payment on accounts payable of $13,000. |
| Sept. |
1 |
Received $8,400 cash in advance as a retainer for services to be performed monthly during the next eight months.
|
| Sept. |
30 |
Sold land for $15,000 cash that had originally cost $15,000. |
| Oct. |
1 |
Purchased $900 of supplies on account. |
| Dec. |
31 |
Earned $80,000 of service revenue on account during the year. |
|
31 |
Received $66,000 cash collections from accounts receivable. |
|
31 |
Incurred $16,000 other operating expenses on account during the year. |
|
31 |
Recognized accrued salaries expense of $5,000. |
|
31 |
Had $250 of supplies on hand at the end of the period. |
|
31 |
The land purchased on July 1 had a market value of $28,000. |
| Required: |
| Based on the preceding information, answer the following questions. All questions pertain to the 2010 financial statements. (Hint: Record the events in general ledger accounts under an 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 be reported for land on the balance sheet? |
| c. |
What amount of net cash flow from operating activities would Oaks report on the statement of cash flows? |
| d. |
What amount of rent expense would Oaks report in the income statement? |
| e. |
What amount of total liabilities would Oaks report on the balance sheet? |
| f. |
What amount of supplies expense would Oaks report on the income statement? |
| g. |
What amount of unearned revenue would Oaks report on the balance sheet? |
| h. |
What amount of net cash flow from investing activities would Oaks report on the statement of cash flows? |
| i. |
What amount of total expenses would Oaks report on the income statement? |
| j. |
What total amount of service revenues would Oaks report on the income statement? |
| k. |
What amount of cash flows from financing activities would Oaks report on the statement of cash flows? |
| l. |
What amount of net income would Oaks report on the income statement? |
| m. |
What amount of retained earnings would Oaks report on the balance sheet? |
