Corporate Jet Inc. started its business on 1/1/2015. During 2015, the company have the following 4 transactions:
For each transaction, prepare a journal entry and classify the change in cash as Operating (O) or Investing (I) or Financing (F).
1. On Feb. 1, Issue a note of $120,000 to bank (one year, annual interest rate 3%) for cash. Interest is not paid until 2016.
Account name
$Amount
Dr:
Cr:
2. On July 5, purchase merchandise from Maida for $33,000.
Account name
$Amount
Dr:
Cr: 3. On August 1, sell merchandise to Lachey for $80,000 in cash.
Account name
$Amount
Dr:
Cr: 4. On October 5, purchased a building for $100,000.
Account name
Dr:
Cr: $Amount 4 transactions:
Investing (I) or Financing (F). t is not paid until 2016.
This transaction involves cash flow from __activities (O/I/F)
answer here answer here answer here answer here Classify each of the following transactions from a)-e) as Operating (O), Investing (I) or Financing (F) and Cash inflow (IN)
O/I/F
IN/OUT
a. Purchase of delivery truck.
b. Issuance of bonds payable.
c. Sale of investments for no gain or loss.
d. Payment of dividends
e. Purchase of treasury stock. g (F) and Cash inflow (IN) or cash outflow (OUT). Instruction: Prepare the operating section of the cash flow statement using th
a Cash received from customers (hint: use Sales, A/R in your calculation) b Cash paid to suppliers (hint: use COGS, A/P and inventory in your calculation) c Cash paid as Operating expenses(hint: use Operating expenses, prepaid expen d Net cash flow from operating activities (i.e. a-b-c) h flow statement using the direct method.
your calculation) ntory in your calculation) expenses, prepaid expenses and accrued expenses in your calculation) Instruction: Prepare the operating section of the cash flow statement using the indirect method. Make sure that your an
account name
sign +/$amount
Net cash flow from operating activities
Net income = Cash flow from operating activities Make sure that your answer is consistent with R3. If not, you must have made a mistake. In your mini Project, you will have the following 3 Journal entries as part of your adjusting journal entries (with that said, do
is to close purchase and related accounts to COGS. Insert the $amount for each of the journal entries based on transaction
Cost of goods sold
Beginning inventory
Cost of goods sold
Purchase Returns
Purchase discounts
Purchases Inventory (ending)
Cost of goods sold 40146 source: "additional information" entries (with that said, don’t forget to add them your project). The purpose of these journal entries
tries based on transactions #2, 4, 7, 14 and 16, as well as the balance sheets from 2013 and 2014. dditional information"
