For the Simon Company, what amount of cash would be reported on the company’s ba
ID: 2419243 • Letter: F
Question
For the Simon Company, what amount of cash would be reported on the company’s balance sheet? What amount of ending retained earnings would be reported?What amount of cash flows from operating activities would be reported?
The Simon Company had the following transactions:
Jan. 1
Owner invested $40,000 cash to start the company
Jan. 1
Paid rent of $800
Jan. 3
Purchased $4,000 of inventory
Jan. 6
Purchased $150 of equipment
Jan. 10
Paid $175 for advertising
Jan. 18
Sold ½ of inventory to customers for $4,600
Jan. 24
Paid $200 utility bill
Jan. 26
Paid employee payroll of $460
Jan. 31
A $250 dividend is paid to the owner
Jan. 1
Owner invested $40,000 cash to start the company
Jan. 1
Paid rent of $800
Jan. 3
Purchased $4,000 of inventory
Jan. 6
Purchased $150 of equipment
Jan. 10
Paid $175 for advertising
Jan. 18
Sold ½ of inventory to customers for $4,600
Jan. 24
Paid $200 utility bill
Jan. 26
Paid employee payroll of $460
Jan. 31
A $250 dividend is paid to the owner
Explanation / Answer
Amount in $ Cash Amount an. 1 Owner invested $40,000 cash to start the company $40,000 Jan. 1 Paid rent of $800 -800 Jan. 10 Paid $175 for advertising -175 Jan. 24 Paid $200 utility bill -200 Jan. 26 Paid employee payroll of $460 -460 Jan. 31 A $250 dividend is paid to the owner -250 Cash 38115 Retained earnings Amount Jan. 18 Sold ½ of inventory to customers for $4,600 4600 Jan. 18 Inventory cost for half -2000 Jan. 1 Paid rent of $800 -800 Jan. 24 Paid $200 utility bill -200 Jan. 26 Paid employee payroll of $460 -460 Jan. 31 A $250 dividend is paid to the owner -250 Retained Earnings 890 Cash Flow from Operating activities Jan. 1 Paid rent of $800 -800 Jan. 3 Purchased $4,000 of inventory -4000 Jan. 10 Paid $175 for advertising -175 Jan. 18 Sold ½ of inventory to customers for $4,600 4600 Jan. 24 Paid $200 utility bill -200 Jan. 26 Paid employee payroll of $460 -460 ` A $250 dividend is paid to the owner -250 Cash Flow from Operating activities -1285