Please solve these for me. Please make an exact table just as in question and pu
ID: 2331995 • Letter: P
Question
Please solve these for me. Please make an exact table just as in question and put down the answers for easy understanding.
On January 1, 2018, Jana started a small flower merchandising business that she named Jana's Flowers. The company experienced the following events during the first year of operation: 1. Started the business by issuing common stock for $43,000 cash. 2. Paid $28,000 cash to purchase inventory. 3. Sold merchandise that cost $20,000 for $42,000 on account. 4. Collected $37,000 cash from accounts receivablee 5. Paid $9,800 for operating expenses. Required a. Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table provide appropriate account titles for the Retained Earnings amounts. b-1. Prepare an income statement. b-2. Prepare a balance sheet. b-3.Prepare a statement of cash flows. c. Since Jana sold inventory for $42,000, she will be able to recover more than half of the $43,000 she invested in the stock. Do you agree with this statement?Explanation / Answer
Answers
>requirement ‘a’: Accounting Equation table
>Req ‘b3’: Cash flow Statement.
Event
Cash
Accounts receivables
Inventory
Common Stock
Retained Earnings
Accounts title for retained Earnings
1
$ 43,000.00
$ 43,000.00
NA
2
$ (28,000.00)
$ 28,000.00
NA
3a
$ 42,000.00
$ 42,000.00
Sales Revenue
3b
$ (20,000.00)
$ (20,000.00)
Cost of Goods Sold
4
$ 37,000.00
$ (37,000.00)
NA
5
$ (9,800.00)
$ (9,800.00)
Operating Expenses
Total
$ 42,200.00
$ 5,000.00
$ 8,000.00
$ 43,000.00
$ 12,200.00
Cash Flows from Operating Activities:
Cash received from customers
$ 37,000.00
Cash paid for Operating Expenses
$ (9,800.00)
Cash paid to supplier for purchasing Inventory
$ (28,000.00)
Net Cash Flow from Operating Activities
$ (800.00)
Cash Flow from Investing activities
$ -
Cash Flows from Financing activities:
Cash received from issuance of Stock
$ 43,000.00
Net Cash flows from financing activities
$ 43,000.00
Net Change in Cash
$ 42,200.00
Plus: Beginning Cash Balance
$ -
Ending cash Balance
$ 42,200.00
---Requirement ‘b1’
Income Statement
Sales revenue [Event 3]
$ 42,000.00
Cost of Goods Sold [Event 3]
$ 20,000.00
Gross Profits
$ 22,000.00
Operating Expenses [Event 5]
$ 9,800.00
Net Income
$ 12,200.00
---Requirement ‘b2’: Balance Sheet
ASSETS
Cash
$ 42,200.00
Accounts receivables
$ 5,000.00
Inventory
$ 8,000.00
Total Assets
$ 55,200.00
LIABILITIES
STOCKHOLDER'S EQUITY
Common Stock
$ 43,000.00
Retained Earnings
$ 12,200.00
Total Stockholder's Equity
$ 55,200.00
Total Liabilities & Stockholder's Equity
$ 55,200.00
Event
Cash
Accounts receivables
Inventory
Common Stock
Retained Earnings
Accounts title for retained Earnings
1
$ 43,000.00
$ 43,000.00
NA
2
$ (28,000.00)
$ 28,000.00
NA
3a
$ 42,000.00
$ 42,000.00
Sales Revenue
3b
$ (20,000.00)
$ (20,000.00)
Cost of Goods Sold
4
$ 37,000.00
$ (37,000.00)
NA
5
$ (9,800.00)
$ (9,800.00)
Operating Expenses
Total
$ 42,200.00
$ 5,000.00
$ 8,000.00
$ 43,000.00
$ 12,200.00