Problem1

Given the following information from the records of J. Harden Company

for the current year 2015, determine the net cash flows operating activities.

Cash received from customers 100,000.00

Cash paid to suppliers 32,000.00
Cash paid to employees 20,000.00
Taxes paid to muncipality 5,500.00
Rent Income received 4,500.00
Bank Interest received 6,700.00
Depreciation Expense 9,600.00
Interest paid on bank loan 5,000.00
Cash dividends received 8,000.00
Bad debts expense 2,400.00

Problem2
The following data are taken from the records of Branded Company for
the year 2015

Collections from customers 1,750,000.00

Provisions for bad debts 8,000.00
Additional Investment of Branded 200,000.00
Withdrawal of Branded 150,000.00
Dividends on stock investments received 20,000.00
Interest income received 5,600.00
Taxes and licenses paid 5,000.00
Operating expenses paid 350,000.00
Commission Income received 30,000.00
Principal of bank loan paid 10,000.00
Interest on bank loan paid 13,000.00
Proceeds from Sale of equipment 50,000.00
Cash purchase of building 1,000,000.00
Proceeds of bank loan 700,000.00
Depreciation expense 20,000.00

Required: Prepare a statement of cash flows then determine the following:

a. Net cash flow from operating activities
b. Net cash flow from investing activities
c. Net cash flow from financing activities
d. Net Increase/decrease in cash
e. Cash balance on December 31, 2015
Selected accounts from the chart of accounts of Valdez Company are shown below
101 Cash 401 Sales
112 Accounts Receivable 412 Sales Returns and Allowances
120 Merchandise Inventory 414 Sales Discounts
126 Supplies 505 Cost of Goods Sold
157 Equipment 726 Salaries & Wages Expense
201 Accounts Payable
The cost of all merchandise sold was 60% of the sales price. During January, Valdez
completed the following transactions
Jan 3 Purchased nerchandise on account from Pirkov Co. $10,000
4 Purchased supplies for cash $80
4 Sold merchandise on account to Hull $5,600.
5 Returned $300 worth of damaged goods purchased on account
from Pirkov Co. On January 3.
6 Made cash sales for the week totaling $3,750
8 Purchased merchandise on account from Dubois Co. $4,500
9 Sold merchandise on account to Phelan Corp. $6,400 terms 1/10, n/30
11 Purchased merchandise on account from Akers Co. $3,700
13 Paid in full Pirkov Co. On account less 2% discount.
13 Made cash sales for the week totaling $6,260
15 Received payment from Phelan Corp
15 Paid semi-monthly salaries of $1,300
17 Received payment from Hull
17 Sold merchandise on account to Mayr Co. $1,200 terms 1/0,n/30
19 Purchased equipment on account from Barb Corp. $5,500
20 Cash Sales for the week totaled $3,200
20 Paid in full Dubois Co. On account less a 2% discount.
23 Purchased merchandise on account from Pirrkov Co. $7,800
24 Purchased merchandise on account from Filter Corp. $5,100
27 Made cash sales for the week totaling $4,230
30 Received payment from Mayr Co.
31 Paid semi-monthly salaries of $1,300 to employees
31 Sold merchandise on account to Hull $9,330 terms 1/10, n/30
Valdez Company uses the following journals
1 Sales Journal
2 Single-column purchase journal
3 Cash receipts journal with columns for
Cash -Debit Sales Discount - Debit
Accounts Receivable - Credit Sales Revebue-Credit
Other accounts - Credit Cost of Goods Sold-Debit
Inventory - Credit
4 Cash payments journal with columns for
Other accounts - Debit Accounts Payable-Debit
Inventory - Credit Cash - Credit
5 General Journal

Instructions:
Using the selected accounts provided:
a) Record the January transactions in the appropriate journal noted.
b) Foot and crossfoot all special journals.
Journal Entries

Jan 3 Merchandise Inventory 10,000.00

Accounts Payable 10,000.00

4 Supplies 80.00
Cash 80.00

4 Accounts Receivable 5,600.00

Sales 5,600.00

Cost of Goods Sold 3,360.00

Merchandise Inventory 3,360.00

5 Accounts Payable 300.00

Merchandise Inventory 300.00

6 Cash 3,750.00
Sales 3,750.00

Cost of Goods Sold 2,250.00

Merchandise Inventory 2,250.00

8 Merchandise Inventory 4,500.00

Accounts Payable 4,500.00

9 Accounts Receivable 6,400.00

Sales 6,400.00

Cost of Goods Sold 3,840.00

Merchandise Inventory 3,840.00

11 Merchandise Inventory 3,700.00

Accounts Payable 3,700.00

13 Accounts Payable 9,700.00

Merchandise Inventory 194.00
Cash 9,506.00
Full payment to Pirkov

13 Cash 6,260.00
Sales 6,260.00
 Cost of Goods Sold 3,756.00
Merchandise Inventory 3,756.00

15 Cash 6,336.00
Sales Discount 64.00
Accounts Receivable 6,400.00

15 Salaries Expense 1,300.00

Cash 1,300.00

17 Cash 5,600.00
Accounts Receivable 5,600.00
can longer avail the discount, already lapse

17 Accounts Receivable 1,200.00

Sales 1,200.00

Cost of Goods Sold 720.00

Merchandise Inventory 720.00

19 Equipment 5,500.00
Accounts Payable 5,500.00

20 Cash 3,200.00
Sales 3,200.00

Cost of Goods Sold 1,920.00

Merchandise Inventory 1,920.00

20 Accounts Payable 4,500.00

Cash 4,410.00
Merchandise Inventory 90.00

23 Merchandise Inventory 7,800.00

Accounts Payable 7,800.00

24 Merchandise Inventory 5,100.00

Accounts Payable 5,100.00

27 Cash 4,230.00
Sales 4,230.00

Cost of Goods Sold 2,538.00

Merchandise Inventory 2,538.00
30 Cash 1,200.00
Accounts Receivable 1,200.00

31 Salaries & Wages Expense 1,300.00

Cash 1,300.00

31 Accounts Receivable 9,330.00

Sales 9,330.00

Cost of Goods Sold 5,598.00

Merchandise Inventory 5,598.00
Cash Code 110 Accounts Payable
Date Explanation Ref Debit Credit Balance Date
4 supplies 80.00 - 80.00 Jan-03
6 sales 3,750.00 3,670.00 5
13 9,506.00 - 5,836.00 8
13 sales 6,260.00 424.00 9
15 collection 6,336.00 6,760.00 13
15 Salaries & Wages 1,300.00 5,460.00 19
17 collection 5,600.00 11,060.00 20
20 3,200.00 14,260.00 23
20 4,410.00 9,850.00 24
27 4,230.00 14,080.00
30 1,200.00 15,280.00
31 1,300.00 13,980.00
Sales
30,576.00 16,596.00 13,980.00 Date
Jan-04
Accounts Receivable Code 112 6
Date Explanation Ref Debit Credit Balance 9
4 sales 5,600.00 5,600.00 13
9 6,400.00 12,000.00 17
15 6,400.00 5,600.00 20
17 5,600.00 - 27
17 1,200.00 1,200.00 31
31 9,330.00 10,530.00
Cost of Goods Sold
Date
Jan-04
Merchandise Inventory Code 120 6
Date Explanation Ref Debit Credit Balance 9
Jan-03 purchases on account 10,000.00 10,000.00 13
4 sales 3,360.00 6,640.00 17
5 300.00 6,340.00 20
6 2,250.00 4,090.00 27
8 4,500.00 8,590.00 31
9 3,840.00 4,750.00
11 3,700.00 8,450.00 Sales Disount
13 194.00 8,256.00 Date
13 3,756.00 4,500.00 Jan-00
17 720.00 3,780.00
20 1,920.00 1,860.00
20 90.00 1,770.00
23 7,800.00 9,570.00
24 5,100.00 14,670.00
27 2,538.00 12,132.00
 1,200.00 10,932.00
31 5,598.00 5,334.00
Salaries & wages expenses
31,100.00 25,766.00 5,334.00 Date
Jan-15
31
supplies Code 112
Date Explanation Ref Debit Credit Balance
4 80 80

Equipment Code
Date Explanation Ref Debit Credit Balance
19 5,500.00 5,500.00
Accounts Payable Code 201
Explanation Ref Debit Credit Balance
purchases pirkov 10,000.00 10,000.00
300 9,700.00
4,500.00 14,200.00
3,700.00 17,900.00
9700 8,200.00
Equipment 5,500.00 13,700.00
payment 4500 9,200.00
7,800.00 17,000.00
Purchases 5,100.00 22,100.00

code 401
Explanation Ref Debit Credit Balance
hull 5,600.00 5,600.00
3,750.00 9,350.00
6,400.00 15,750.00
6,260.00 22,010.00
1,200.00 23,210.00
3,200.00 26,410.00
4,230.00 30,640.00
9,330.00 39,970.00

Cost of Goods Sold code 505

Explanation Ref Debit Credit Balance
Sales 3,360.00 3,360.00
2,250.00 5,610.00
3,840.00 9,450.00
3,756.00 13,206.00
720.00 13,926.00
1,920.00 15,846.00
2,538.00 18,384.00
5,598.00 23,982.00

Sales Disount code

Explanation Ref Debit Credit Balance
64 64.00
Salaries & wages expenses code 401
Explanation Ref Debit Credit Balance
1,300.00 1,300.00
1,300.00 2,600.00
Trial Balance
Debit Credit
Cash 13,980.00
Accounts Receivable 10,530.00
Merchandise Inventory 5,334.00
Supplies 80.00
Equipment 5,500.00
Accounts Payable 22,100.00
Sales 39,970.00
Sales Returns & Allowances
Sales Discounts 64.00
Cost of Goods Sold 23,982.00
Salaries & Wages 2,600.00

62,070.00 62,070.00
-
Income Statement
Sales 39,970.00
Less: Sales Discounts 64.00
Net Sales 39,906.00
Less: Cost of Goods Sold 23,982.00
Gross Profit/Margin 15,924.00
Less: Operating Expenses
Salaries & Wages 2,600.00
Net Profit 13,324.00

Balance Sheet
ASSETS
Cash 13,980.00
Accounts Receivable 10,530.00
Mechandise Inventory 5,334.00
Supplies 80.00
Equipment 5,500.00
Total Assets 35,424.00

LIABILITIES & OWNER'S EQUITY

Accounts Payable 22,100.00

Owner's Equity
Net Income 13,324.00
Total Liabilities & Owner's Equity 35,424.00