Hi I need help filling the rest out. Stanley Furniture Company is a Virginia-bas
ID: 2560748 • Letter: H
Question
Hi I need help filling the rest out.
Stanley Furniture Company is a Virginia-based furniture manufacturer. For each of the following first-year transactions, indicate whether net cash inflows (outflows) from operating activities (NCFO), investing activities (NCFI), or financing activities (NCFF) are affected and whether the effect is an inflow (+) or outflow (-). (Hint: Determine the journal entry recorded for the transaction. The transaction affects net cash flows if and only if the account Cash is affected.) (Select "NE" if there is no effect. 1. Recorded an adjusting entry to record accrued salaries expense 2. Paid cash to purchase new equipment. 3. Collected payments on account from customers 4. Recorded and paid interest on debt to creditors. 5. Declared and paid cash dividends to shareholders. 6. Sold used equipment for cash at book value 7. Prepaid rent for the following period 8. Repaid principal on revolving credit loan from bank 9. Purchased raw materials inventory on account 10. Made payment to suppliers on account NEExplanation / Answer
1.Accrued salaries refers to the amount of liability remaining at the end of a reporting period for salaries that have been earned by employees but not yet paid to them.
Journal entry
Salaries account Dr. ***
To. Accured salaries account ***
In entry there is no effect of cash,so no cash inflow or out flows.
2.purchase of equipment for cash is outflow to the entity.it is comes under investing activities (NCFI) out flows.
Equipment account Dr****
To cash a/c. ****
3.collection of payments from customers is inflow and shown under operating activities.
Cash a/c. Dr ***
To customers a/c. ***
4.it is an operating activity and outflow to the company.
Interest expense a/c Dr **
To cash **
5.financing activity and nature of cash out flow.
Dividend to share holders a/c Dr ***
To cash. ***
6.sold of used equipment is investing activity and cash flow to the company
Cash a/c. Dr. ***
To equipment a/c. ***
7.prepaid rent is operating activities under cash flow,and it is out flow to the company..
Prepaid rent a/c Dr **
To cash **
8.repaid of loan is financing activitie and out flow of cash.
Loan a/c Dr ***
To cash. ***
9. Raw material a/c Dr ***
To supplier ***
Here no cash is involved,it is operating activity.
10.suppliers a/c Dr ***
To cash. ***
It is cash out flow nature of operating activity.