Question norman co borrowed 15000 from the local bank on

Assignment Help Financial Accounting

Reference no: EM13350214

Question :

Norman Co. borrowed $15,000 from the local bank on 1^st April, 2012, when the company was started. The note had an 8 % annual interest rate and a one-year term to maturity. Norman Co. identifies $42,000 of revenue on account in 2012 and $56,000 of revenue on account in 2013. Cash collections from accounts receivable were $38,000 in 2012 and $58,000 in 2013. Norman Co. paid $26,000 of salaries expense in 2012 and $32,000 of salaries expense in 2013. Norman Co. paid the interest and loan at the maturity date.

Required

a. Classify the information in accounts under an accounting equation.

b. Evaluate net cash flow from operating activities would be reported on the 2012 cash flow statement?

c. Determine interest expense would be reported on the 2012 income statement?

d. What amount of net liabilities would be reported on the 31^st December, 2012, balance sheet?

e. Evaluate retained earnings would be reported on the 31^st December, 2012, balance sheet?

f. Evaluate cash flow from financing activities would be reported on the 2012 statement of cash flows?

g. Evaluate interest expense would be reported on the 2013 income statement?

h. Determine cash flows from operating activities would be reported on the 2013 cash flow statement?

I. What amount of assets would be reported on the 31^st December, 2013, balance sheet?

Reference no: EM13350214

Questions Cloud

Problem 1effect of accrued interest on financial : problem 1effect of accrued interest on financial statementsnorman co. borrowed 15000 from the local bank on 1st april

Questionaccounting for sales tax and short-term debt -two : questionaccounting for sales tax and short-term debt -two accounting cyclesthe subsequent transactions apply to artesia

Question able company expects to start the coming year with : question able company expects to start the coming year with 12000 units of product x in the inventory of completed

Question on 1st january 2013 lauras living company has the : question on 1st january 2013 lauras living company has the subsequent defined benefit pension plan balances.projected

Question norman co borrowed 15000 from the local bank on : question norman co. borrowed 15000 from the local bank on 1st april 2012 when the company was started. the note had an

Questionzoya arbiser regional manager of gold medal sports : questionzoya arbiser regional manager of gold medal sports shops is analysis the results of 15 stores in her region.

Problem 1 starting work-in-process is 2000 units units : problem 1. starting work-in-process is 2000 units units completed is 44000 units and ending work-in-progress is 3000

Question marina del rey manufacturing corp uses a typical : question marina del rey manufacturing corp. uses a typical cost system that records raw materials at real cost records

Question bugaboo co manufactures three kinds of cookies : question bugaboo co. manufactures three kinds of cookies fluffs snaps and crinkles. the production process is

User Account

All Pages