QMB 3200 SUMMARY FOR
REVISION
CH. 1 Lime Company
Total equity + total liabilities
CH. 1 Grapefruit servies
(Total Assets - Total Liabilities) + (Revenues - Expenses) - owner
withdraw
CH. 1 Lemon Company,
Follow the reports.
Mar. 1 The business received $9000 cash from the owner of the
business, Lemon. The business gave capital to Lemon.
Mar. 2 Paid the first month's rent of $600.
Mar. 3 Purchased equipment by paying $3000 cash and
executing a note payable for $8000.
Mar. 4 Purchased office supplies for $730 cash.
Mar. 5 Billed a client for $10,000 of design services completed.
Mar. 6 Received $8000 on account for the services previously
recorded.
(9000-600-3000-730+8000) = 13270
(received cash - month rent - equipment purchase - office
supplies + accounts receivable)
CH. 1 Pear Company
, Net income:
-change in current assets
-Change in current liabilities
+depreciation expense
-Gain on sale of plant assets
=Net cash provided
CH. 1 Peach Corp.
-(purchase of equipment) + ( Sale of equipment) = Net cash
inflow
CH. 1 Orange Corp.
Rationale:
Long-term Notes Payable repaid
$(37,000)
Long-term Notes Payable borrowed 28,000
Issued Common Stock 26,700
Dividends paid ($77,000 + $51,000 - $117,000)(11,000)
Purchased Treasury Stock (4600)
Net Cash from Financing Activities $2100
$2100 (correct)
Amount of Dividends Paid = Beginning Retained Earnings + Net
Income - Ending Retained Earnings
REVISION
CH. 1 Lime Company
Total equity + total liabilities
CH. 1 Grapefruit servies
(Total Assets - Total Liabilities) + (Revenues - Expenses) - owner
withdraw
CH. 1 Lemon Company,
Follow the reports.
Mar. 1 The business received $9000 cash from the owner of the
business, Lemon. The business gave capital to Lemon.
Mar. 2 Paid the first month's rent of $600.
Mar. 3 Purchased equipment by paying $3000 cash and
executing a note payable for $8000.
Mar. 4 Purchased office supplies for $730 cash.
Mar. 5 Billed a client for $10,000 of design services completed.
Mar. 6 Received $8000 on account for the services previously
recorded.
(9000-600-3000-730+8000) = 13270
(received cash - month rent - equipment purchase - office
supplies + accounts receivable)
CH. 1 Pear Company
, Net income:
-change in current assets
-Change in current liabilities
+depreciation expense
-Gain on sale of plant assets
=Net cash provided
CH. 1 Peach Corp.
-(purchase of equipment) + ( Sale of equipment) = Net cash
inflow
CH. 1 Orange Corp.
Rationale:
Long-term Notes Payable repaid
$(37,000)
Long-term Notes Payable borrowed 28,000
Issued Common Stock 26,700
Dividends paid ($77,000 + $51,000 - $117,000)(11,000)
Purchased Treasury Stock (4600)
Net Cash from Financing Activities $2100
$2100 (correct)
Amount of Dividends Paid = Beginning Retained Earnings + Net
Income - Ending Retained Earnings
