Concept explainers
LO 4
(Learning Objective 4: Construct a statement of
Requirement
1. Prepare the statement of cash flows of Island Coffee Roasters Corporation for the month ended August 31, 2019. Using Exhibit 1-11 as a model, show with arrows the relationships among the income statement, statement of
LO 4
Refer
LO 4
E1-39B. (Learning Objective 4: Construct an income statement and a statement of retained earnings) Assume Island Coffee Roasters Corporation ended the month of August 2019 with these data:
Payments of cash: | |||
Acquisition of equipment....... | $200,000 | Cash balance, August 1, 2019…. | $ 0 |
Dividends …………… | 2,700 | Cash balance, August 31, 2019…. | 6,000 |
Retained earnings | Cash receipts: | ||
August 1, 2019…………… | 0 | Issuance (sale) of stock to owners ........................... | 13,700 |
Retained earnings | |||
August 31, 2019…………... | ? | Rent expense............................. | 1,800 |
Utilities expense ………… | 5,800 | Common stock........ | 13,700 |
Adjustments to reconcile net income to net cash Provided by operations......... | 1,400 | Equipment ………….. | 200,000 |
Office supplies……………….. | 7,500 | ||
Accounts payable.................... | 8,900 | ||
Salary expense................... | 78,100 | Service revenue........................... | 279,900 |
Requirement
1. Prepare the income statement and the statement of retained earnings for Island Coffee Roasters Corporation for the month ended August 31, 2019.
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Financial Accounting (12th Edition) (What's New in Accounting)
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