Answered

IDNLearn.com is your reliable source for expert answers and community insights. Our platform is designed to provide reliable and thorough answers to all your questions, no matter the topic.

Alex Vera organized Succulent Express at the beginning of February 20Y4. During February, Succulent Express entered into the following transactions:
a. Terry Mason invested $30,000 in Succulent Express in exchange for common stock.
b. Pald $5,400 on February i for an insurance premium on a one-year policy.
c. Purchased supplies on account, $1,800.
d. Received fees of $57,000 during February
e. Paid expenses as follows: wages, 521,600; rent, $6,400; utilities, $2,800; and miscellaneous, $3,200.
f. Paid dividends of $8,000.
Record the preceding transactions using the integrated financial statement framework. After each transaction, enter a balance for each item. If an amount box does not require an entry, leave it blank. Enter account decreases and net cash outflows as negative amounts using the minus sign.

Sagot :

Answer:

Net cash flow = $39,600

Net  income = $18,050

Explanation:

Note: There is an error in the wages amount stated in the question. The correct amount of the wages is $21,600 not 521,600.

Explanation of the answer is now provided as follows:

Note: See the attached excel file for the integrated financial statement which comprises of Balance Sheet, Statement of Cash Flow and the Income Statement.

An integrated financial statement framework can be described as a type of framework which presents the balance sheet, cash flow statement, and income statement of a company.

In the attached excel file the following are used:

Insurance premium paid under Retained Earnings = Insurance premium paid * (11 Months / 12 Months) = $5,400 * (11 / 12) = $4,950

Prepaid insurance = Insurance premium paid - Insurance premium paid under Retained Earnings = $5,400 - $4,950 = $450

Expenses paid = wages + rent + utilities + miscellaneous = $21,600 + $6,400 + $2,800 + $3,200 = $34,000

View image Amcool
We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Discover insightful answers at IDNLearn.com. We appreciate your visit and look forward to assisting you again.