Question Details

(Solution) - Each of the following events describes acquiring an asset that

Brief item decscription

Solution download


Item details:

Each of the following events describes acquiring an asset that requires a year-end adjusting entry.
1. Paid $7,000 cash on January 1 to purchase printers to be used for administrative purposes. The printers had an estimated useful life of three years and a $1,000 salvage value.
2. Paid $7,000 cash on January 1 to purchase manufacturing equipment. The equipment had an estimated useful life of three years and a $1,000 salvage value.
3. Paid $6,000 cash in advance on May 1 for a one-year rental contract on administrative
offices.
4. Paid $6,000 cash in advance on May 1 for a one-year rental contract on manufacturing
facilities.
5. Paid $1,000 cash to purchase supplies to be used by the marketing department. At the end of the year, $200 of supplies were still on hand.
6. Paid $1,000 cash to purchase supplies to be used in the manufacturing process. At the end of the year, $200 of supplies were still on hand.
Required
Explain how acquiring the asset and making the adjusting entry affect the amount of net income and the cash flow reported on the year-end financial statements. Also, in the Cash Flow column, indicate whether the cash flow is for operating activities (OA), investing activities (IA), or financing activities (FA). Use (NA) for no effect. Assume a December 31 annual closing date. The first event has been recorded as an example. Assume that any products that have been made have not beensold.

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Jul 11, 2017

PRICE: $15

Solution~000779469382.zip (18.37 KB)

Buy this answer for only: $15

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now