Using a financial statements model like the one shown below

Assignment Help Accounting Basics

Reference no: EM13599076

A partial amortization schedule for a ten-year note payable that Muro Co. issued on January 1, 2012, is shown here:
Accounting Period Principal Balance Jan 1 Cash Payment Applied to Interest Applied to Principal

2012 $200,000 $32,549 $20,000 $12,549
2013 187,451 32,549 18,745 13,804

b. Using a financial statements model like the one shown below, record the appropriate amounts for the following two events. (1) January 1, 2012 issue of the note payable. (2) December 31, 2012 payment on the note payable.
Event No. 1 Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow

c. If the company earned $75,000 cash revenue and paid $35,000 in cash expenses in addition to the interest in 2012, what is the amount of each of the following? (1) Net income for 2012 (2) Cash flow from operating activities for 2012 (3) Cash flow from financing activities for 2012.

d. What is the amount of interest expense on this loan for 2014?

Reference no: EM13599076

Questions Cloud

Keynessian theory of income determination to explain in : to explain in detail keynes view on income determination. that is to account for income determination using the

Rainbow cruises operates a week-long cruise tour through : rainbow cruises operates a week-long cruise tour through the hawaiian islands. passengers currently pay 1800 for a

On january 10 2010 shore company purchased a block of these : ship corporation had outstanding 100000 shares of no-par common stock. on january 10 2010 shore company purchased a

Her department has had a history of not keeping enough : her department has had a history of not keeping enough inventory on hand to meet demand. she has come to you very angry

Using a financial statements model like the one shown below : a partial amortization schedule for a ten-year note payable that muro co. issued on january 1 2012 is shown here

In addition to being an effective means of estimating : in addition to being an effective means of estimating uncollectible accounts the aging of ar is often used as a guide

Prepare an absorption costing income statement of the : a. debits credits cash 48000 accounts rec. 224000 inventory 60000 buildings and equ. 370000 accounts payable 93000

The controller of ruiz co believes that the yearly : the controller of ruiz co. believes that the yearly allowance for doubtful accounts for ruiz co. should be 2 of net

On january 1 2010 kloppenberg company had accounts : on january 1 2010 kloppenberg company had accounts receivable 139000 notes receivable 25000 and allowance for doubtful

User Account

All Pages