(a) Introduction: Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances. To record: The journal entries.

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Answer 1

Question

Chapter 12, Problem 4E

To determine

(a)

Introduction:

Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances.

To record:

The journal entries.

To determine

(b)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.
To identify:

The amount of net cash flow from operating activities.

To determine

(c)

Introduction:

Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned.

To calculate:

The amount of net income.

To determine

(d)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To calculate:

The cash flow from operating activities under the indirect method

To determine

(e)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

The general rule that is applied to convert net income to operating cash flows in requirement 4.

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Suppose your company sells services of $180 in exchange for $110 cash and $70 on account.Required:1. Show the journal entry to record this transaction.2. Identify the amount that should be reported as net cash flow from operating activities.3. Identify the amount that would be included in net income.4. Show how the indirect method would convert net income (requirement 3) to net cash flowfrom operating activities (requirement 2).5. What general rule about converting net income to operating cash flows is revealed by youranswer to requirement 4?

Suppose your company sells services of $270 in exchange for $155 cash and $115 on account. Required: Prepare the journal entry to record this transaction. Identify the amount that should be reported as net cash flow from operating activities. Identify the amount that would be included in net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). I have no clue how to work this problem

Suppose your company sells services of $180 in exchange for $110 cash and $70 on account. Required: 1. Prepare the journal entry to record this transaction. 2. Identify the amount that should be reported as net cash flow from operating activities. 3. Identify the amount that would be included in net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).

Answer 2

Question

Chapter 12, Problem 4E

To determine

(a)

Introduction:

Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances.

To record:

The journal entries.

To determine

(b)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.
To identify:

The amount of net cash flow from operating activities.

To determine

(c)

Introduction:

Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned.

To calculate:

The amount of net income.

To determine

(d)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To calculate:

The cash flow from operating activities under the indirect method

To determine

(e)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

The general rule that is applied to convert net income to operating cash flows in requirement 4.

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Answer 3

Question

Chapter 12, Problem 4E

To determine

(a)

Introduction:

Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances.

To record:

The journal entries.

To determine

(b)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.
To identify:

The amount of net cash flow from operating activities.

To determine

(c)

Introduction:

Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned.

To calculate:

The amount of net income.

To determine

(d)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To calculate:

The cash flow from operating activities under the indirect method

To determine

(e)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

The general rule that is applied to convert net income to operating cash flows in requirement 4.

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Answer 4

Question

Chapter 12, Problem 4E

To determine

(a)

Introduction:

Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances.

To record:

The journal entries.

To determine

(b)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.
To identify:

The amount of net cash flow from operating activities.

To determine

(c)

Introduction:

Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned.

To calculate:

The amount of net income.

To determine

(d)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To calculate:

The cash flow from operating activities under the indirect method

To determine

(e)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

The general rule that is applied to convert net income to operating cash flows in requirement 4.

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Answer 5

Chapter 12, Problem 4E

To determine

(a)

Introduction:

Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances.

To record:

The journal entries.

To determine

(b)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.
To identify:

The amount of net cash flow from operating activities.

To determine

(c)

Introduction:

Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned.

To calculate:

The amount of net income.

To determine

(d)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To calculate:

The cash flow from operating activities under the indirect method

To determine

(e)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

The general rule that is applied to convert net income to operating cash flows in requirement 4.

Answer 6

Chapter 12, Problem 4E

To determine

(a)

Introduction:

Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances.

To record:

The journal entries.

Answer 7

Chapter 12, Problem 4E

To determine

(a)

Introduction:

Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances.

To record:

The journal entries.

Answer 8

To determine

(b)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.
To identify:

The amount of net cash flow from operating activities.

Answer 9

To determine

(b)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.
To identify:

The amount of net cash flow from operating activities.

Answer 10

To determine

(c)

Introduction:

Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned.

To calculate:

The amount of net income.

Answer 11

To determine

(c)

Introduction:

Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned.

To calculate:

The amount of net income.

Answer 12

To determine

(d)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To calculate:

The cash flow from operating activities under the indirect method

Answer 13

To determine

(d)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To calculate:

The cash flow from operating activities under the indirect method

Answer 14

To determine

(e)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

The general rule that is applied to convert net income to operating cash flows in requirement 4.

Answer 15

To determine

(e)

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

The general rule that is applied to convert net income to operating cash flows in requirement 4.

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - What information does the statement of cash flows...Ch. 12 - Prob. 3Q Ch. 12 - What are the major categories of business...Ch. 12 - Prob. 5Q Ch. 12 - Prob. 6Q Ch. 12 - Prob. 7Q Ch. 12 - Prob. 8Q Ch. 12 - Prob. 9Q Ch. 12 - Prob. 10Q

(a) Introduction: Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances. To record: The journal entries.

Solution Summary: The author states the general rule that is applied to convert net income to operating cash flows in requirement 4.

(a)

Introduction:

Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances.

To record:

The journal entries.

(c)

Introduction:

Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned.

To calculate:

The amount of net income.

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Chapter 12 Solutions

(a) Introduction: Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances. To record: The journal entries.

Solution Summary: The author states the general rule that is applied to convert net income to operating cash flows in requirement 4.

(a) Introduction: Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances. To record: The journal entries.

(c) Introduction: Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned. To calculate: The amount of net income.

Want to see the full answer?

Chapter 12 Solutions

(a)

Introduction:

Journal entry is recording of the transaction in the accounting journal in a chronological order. The entries are recorded as the Debit balances and Credit balances.

To record:

The journal entries.

(c)

Introduction:

Net income is the income that is calculated after the deduction of expenses such as selling and administration expenses, cost of goods sold, operating expenses, depreciation etc. from the revenue earned.

To calculate:

The amount of net income.