Articulation
The following data are for Bond Company. Note: All inventory is purchased on account, and Accounts Payable relates only to the purchase of inventory.
|
|
Dec 31, 2008 |
Dec 31, 2007 |
|
BALANCE SHEET DATA (partial) |
|
|
|
Accounts receivable |
$ 72,000 |
$65,000 |
|
Inventory |
54,000 |
41,000 |
|
Prepaid rent |
? |
8,000 |
|
Accounts payable |
44,000 |
52,000 |
|
Wages payable |
23,000 |
? |
|
INCOME STATEMENT DATA |
|
|
|
Sales |
485,000 |
|
|
Cost of goods sold |
? |
|
|
Wages expense |
? |
|
|
Rent expense |
22,000 |
|
|
Other expenses |
121,000 |
|
|
Net income |
? |
|
|
CASH FLOW DATA |
|
|
|
Net Income |
? |
|
|
_/_ Change in accounts receivable |
(7,000) |
|
|
_/_ Change in inventory |
(13,000) |
|
|
_/_ Change in accounts payable |
(8,000) |
|
|
_/_ Change in prepaid rent |
? |
|
|
_/_ Change in wages payable |
6,000 |
|
|
Cash from operating activities |
? |
|
|
OTHER DATA |
|
|
|
Cash collected from customers |
? |
|
|
Cash paid for inventory |
? |
|
|
Inventory purchased on account |
230,000 |
|
|
Cash paid for rent |
27,000 |
|
|
Cash paid for wages |
81,000 |
|
|
Cash paid for other expenses |
121,000 |
|
Instructions:
Compute the following:
1. The ending balance in the prepaid rent account.
2. The beginning balance in the wages payable account.
3. The amount of Cost of Goods Sold for 2008.
4. The amount of Wages Expense for 2008.
5. The amount of reported Net Income for 2008.
6. The amount of cash collected from customers during 2008.
7. The amount of cash paid for inventory during 2008.