Week 3 Liz ten and Nerys - 20591

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  • Posted on: Mon 29 Jul, 2013
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Problem 1:      
         
The 2012 accounting records of Liz Ten Transport reveal the following transactions and events. 
Prepare the cash flows from operating activities section using the  direct method. (Not all of the items will be used.)
         
  Payment of interest $10,000 Collection of accounts receivable $182,000
  Cash sales 48,000 Payment of salaries and wages 53,000
  Receipt of dividend revenue 18,000 Depreciation expense 16,000
  Payment of income taxes 12,000 Proceeds from sale of vehicles 12,000
  Net income 38,000 Purchase of equipment for cash 22,000
  Payment of accounts payable for merchandising 115,000 Payment of dividends 14,000
  Payment for land 74,000 Payment of operating expenses

28,000

 

Problem 2:
 
An inexperienced accountant for Nerys Corporation showed the following in the income 
statement: income before income taxes and extraordinary item $400,000, and extraordinary 
loss from flood (before taxes) $70,000. The extraordinary loss and taxable income are both 
subject to a 30% tax rate. Prepare a correct income statement. 
Solution Description

please see

Attachments
AC315 Module-3_Assignment_worksheet Liz Ten Transport and Nerys Corporation.xlsx
AC315 Module-3_...