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1. Mary Malone opens her owner law office on july 1 2008. During the first month of operations, the following transactions occurred:
1. Invested $15 000 in cash in the law practice.
2. Paid $800 for july rent on office space
3. Purchase office equipment on account,$300.
4. Rendered legal service to client for cash,$1,500.
5. Borrowed $700 cash from a bank on a note payable.
6. Rendered legal service to client on account,$2,000.
7. Paid monthly expenses: $500,utilities,$300,and telephone,$100. Question:
a. Prepare tabular summary og the transaction.
b. Prepare income statement at july 31 for Mary Malone,Attorney at law.
2.Select transaction for L.Visser,an interior decoration,in her first month of business,are as follows:
Jan 2 Invested $8,00 cash in business.
3 Purchase used car for #4,000 cash for use in business.
9 Purchase supplies in account for $500.
11 Billed customers $1,800 for service performed.
16 Paid $200 cash for advertising start of business.
20 Received $700 cash from customers billed on January 11.
23 Paid creditor $300 cash account.
28 withdrew $500 cash for personal use of awner
Question
Journalize the transactions using journal
What else can I help you with?
Does capital reserve affect cash flow statement?
NO
What affect does an increase or decrease in accounts payable have on the statement of cash flow?
It effects in working capital changes in cash flow
How does depreciation affect cash flow statement?
Depreciation does not effect cash flow statement as depreciation is not a cash expense rather it is just a treatement to dispose off the value of asset according to useful life of asset and the cost of asset is already shown in cash flow statement when asset is purchased.
Is depreciation is integral part of cash flow statement?
Depreciation appears only in the operations section of an indirect-method cash flow statement or in a supporting schedule to the body of the statement of cash flows in a direct-method statement. Depreciation is one of the items that reconciles net income to net cash flow from operating activities. However, it does not appear directly on a direct-method cash flow statement because it does not directly affect cash
Why Diffrance between cash flow and accounting profit?
Cash flow by definition looks at the flow of cash either inwards or outwards. However, financial statement accounting considers cash flows as well as non-cash items like depreciation, amortization of goodwill, capital write offs, bad debts, provisions, discounts & rebates, etc. The non-cash transactions affect the accounting profit while does not have any impact on the cash flow statements.Hope this helps!
Period expenses which do not affect the cash flow of the company should be excluded from the cash flow statement and how true is this statement?
Yes it is correct as cash flow statement only deals in cash so non cash items should be eliminated from cash flow statement.
Does capital reserve affect cash flow statement?
NO
Does the choice of cost flow method affect the statement of cash flows?
no only the method of preparing the cash flow statement can not change the actual cash flow it is just the preference of preparation.
How do treasury stock affect Cash flow statement?
treasury stock is shown under cash flow from financing activities as a reduction in cash.
What affect does an increase or decrease in accounts payable have on the statement of cash flow?
It effects in working capital changes in cash flow
How does depreciation affect cash flow statement?
Depreciation does not effect cash flow statement as depreciation is not a cash expense rather it is just a treatement to dispose off the value of asset according to useful life of asset and the cost of asset is already shown in cash flow statement when asset is purchased.
Is depreciation is integral part of cash flow statement?
Depreciation appears only in the operations section of an indirect-method cash flow statement or in a supporting schedule to the body of the statement of cash flows in a direct-method statement. Depreciation is one of the items that reconciles net income to net cash flow from operating activities. However, it does not appear directly on a direct-method cash flow statement because it does not directly affect cash
What is another name for cash flow of statement?
Another name of cash flow statement is fund flow statement.
Does using the direct method of preparing a cash flow statement provide a higher cash flow result than the indirect method?
Actual cash flow remains the same no matter what method is used it is just the presentation of statement and method of calculated cash flows and it does not affect amount of cash flow
What is cash-flow statement?
Cash flow statement is the statement which show the cash flow from operating, financing and investing activities.
When a cash dividend is declared it would affect the balance sheet but not the statement of cash flows?
dividend will affect the cash flow when actual cash is paid and not at the time of declaration of dividend.
Why Diffrance between cash flow and accounting profit?
Cash flow by definition looks at the flow of cash either inwards or outwards. However, financial statement accounting considers cash flows as well as non-cash items like depreciation, amortization of goodwill, capital write offs, bad debts, provisions, discounts & rebates, etc. The non-cash transactions affect the accounting profit while does not have any impact on the cash flow statements.Hope this helps!
