June 1 collected 10,000 of accounts recivables from May sales. June 6 paid 5,000
ID: 2435082 • Letter: J
Question
June 1 collected 10,000 of accounts recivables from May sales.June 6 paid 5,000 of its accounts payable from May purchases
June 6 paid 600 cash fro supplies
-june 8 purchased 1,000 caps @ 6.20 each on account. FOB shipping point. shippingcost was 150 , also on account.
-june 30 during june, Tim Tam's sold 1,000 baseball caps @ 10 each on account. Tim's uses a FIFO perpetual inventory system. beginning inventory consists of 300 caps at 6.25 each.
-Jne 30 Tim Tam's declared and paid a 4,000 cash dividend to its shareholder.
-June 30 adjusted for insurance used during the month. Recall that on May 1, Tim's paid 600 for three months of insurance coverage.
-June 30 counted the office supplies and found that 400 of supplies have notbeen used.
-June 30 recorded one month's stright -line depreciation on the 18,000 truck that has a 6 year useful life and no salvage value.
june 30 recorded interest on the 16000, 4 month 6 % note payable for the month.
*here is the beg. balance sheet at 6/1/10:
Assests:
4,655 cash
10,000 AR
1,875 inventory
400 prepaid insurance
100 supplies
18,000 truck
(750) accum. depr.
- liabilties:
5,000 accounts payable
16,000 notes payable
240 interest pyable
_ contributed cap>
6,000 common stock
_ Retained earnings:
7.040.
what is the statment of cash flows for the month ended June 30, 2010?
Explanation / Answer
Income Statement Sales revenue $10,000 Less: Cost of goods sold $ 6,196 Gross Margin $ 3,806 Less: expenses Insurance $200 Supplies $200 Depreciation $250 Interest $80 $ 730 Net Income $3,076 ======