80.2K

Verified Solution

Link Copied!

Required Information [The following information applies to the questions displayed below.) Aubrae and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows: Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Debit Credit Cash 5,800 Accounts receivable 4,000 Supplies 5,888 Small tools 6,820 Equipment Accumulated depreciation (on equipment) Other noncurrent assets (not detailed to simplify) 8,888 Accounts payable 6.ee Dividends payable Notes payable Wages payable Interest payable Income taxes payable Unearned revenue Common stock (80,000 shares, $e.10 par value) 8,888 Additional paid in capital 11,600 Retained earnings 3,880 Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses (not detailed to simplify) Totals 28.eee 28,880 Transactions during 2020 follow: a. Borrowed $20,000 cash on July 1, 2020, signing a one-year. 10 percent note payable. b. Purchased equipment for $19.000 cash on July 1, 2020. c. Sold 20.000 additional shares of capital stock for cash at $.50 market value per share at the beginning of the year. d. Earned $134,000 in revenues for 2020, including $27.000 on credit and the rest in cash. e. Incurred $27.000 in wages expense and $9.000 in miscellaneous expenses for 2020. with $8.000 on credit and the rest paid with cash. Note: Wages are paid in cash. f. Purchased additional small tools, $3.000 cash. 9. Collected accounts receivable. $13.000. h. Paid accounts payable. $13.000. i. Purchased $16,000 of supplies on account. j. Received a $2.000 deposit on work to start January 15, 2021. k. Declared a cash dividend on December 1, $18.000: paid on December 31. Data for adjusting entries: 1. Supplies of $6.000 and small tools of $5,000 were counted on December 31, 2020 (debit Miscellaneous Expenses). m. Depreciation for 2020. $5.000. n. Interest accrued on notes payable to be computed). o. Wages earned since the December 24 payroll but not yet paid $3.000. p. Income tax expense was $5.000. payable in 2021. 5. Identify the type of transaction for (a) through (k) for the statement of cash flows, and the direction and amount of the effect. (List cash outflows as negative amounts. For transactions with no effect, choose "No effect".) Transaction Type of Effect on Cash Flows Direction and Amount of Effect d. 4 9 h i k(Dec. 1) k(Dec 30)

Answer & Explanation Solved by verified expert

See Answer