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PROVIDE JOURNAL ENTRIES FOR THE FOLLOWING

CASH

ACCRUAL

							INFLOW
15	Securities with a carrying amount of 40 are sold for						30
	30 in cash					GAIN
	Sales Price and Cash Receipt				30
	Balance in Marketable Securities				40			(40)
	Loss on Sale				(10)			(10)
	This LOSS must be recorded in the INCOME STATEMENT.
							INFLOW
16	The securities accrue 20 in interest income all of						20	20
	which is received as a CASH INFLOW during the year
17	After all these supposed Investing Activities are accounted for, look again at the Cash T
	account. If it has again gone negative take another draw from the special liquidity bank
	facility to bring the Cash T account back to zero. If the Cash T account has a large postive
	balance, then to the opposite, use this cash to pay as much of the bank facilty back as
	possible from transsaction [9]. Which ever case it may be recod the debits and credits here
	amd om the cash T account, and the SCF in the right category.
		It is possible NO ENTRY is needed. You must decide.

A % X LG Conditional Formatting Format as Table Cell Styles Cells Paste Font Alignment Number Styles Clipboard X36 V M N 0 P Q R ADD COLUMNS FOR DEBITS AND CREDITS 3 4 5 6 INVESTING BE CAREFUL - the CASH FLOYS DO NOT CARRY SIGNS. Figure it out from the Transaction! CASH ACCRUAL 2 OUTFLOW ES DEBIT 10 10 A new Factory is purchased for 50 using a Note for 50 PPE 50 50 11 12 OUTFLOW 11 An old Factory is reopened and refurbished for 20 in oa 20 and the costs qualify as an EXPENSE This activity must be recorded in the Income Statement. 20 DBIT REPAIR CREDIT CASH 16 22 23 24 25 26 21 28 29 INFLOW 12 An old Factory is sold for 60 in cash, at again of 30 60 30 DEBIT CASH The fair value and sales price was 100 100 100 DEBIT ACCUM 40 The accumulated depreciation was 40 40 30 CREDIT LAND 70 The original acquisition cost for the asset was 70 70 CREDIT GAIN OR 30 The nel carrying amount of the asseran the Nooks at the time othesale isra-40/- The sales price is a Therefore the gain on This GAIN must be recorded in the Income Statement. GAIN ON 30 OUTFLOW 13 Equipment for the factory is purchased for 10 10 DEBIT EQUIPN 10 It is an investment of asset purchase. Its depreciation is CREDIT CASH 10 considered included in the Depreciation Expense DEBIT DEPRECIATION CREDIT ACCUMULATED DE 14 An an investment is made in a debt security It does NOT qualify as a Cash Equivalent. It will be OUTFLOW DEBIT MARKE 30 Marektable Securities Account is purchased for 30 30 CREDIT CASH TO 31 33 34 T 30 Al Marketable Securities are "Available for INFLOW TACE INSTRUCTIONS and GRADE MATRIX DATA Circular References Display Settings o Type here to search

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