An account balance is:
a.The total of the credit side of the account.
b. The total of the debit side of the account.
c. The difference between the total debits and total credits for an account including the beginning balance.
d. Assets = liabilities + equity.
e. Always a credit.
2. debit is used to record which of the following:
a. A decrease in an asset account.
b. A decrease in an expense account.
c. An increase in a revenue account.
d. An increase in the common stock account.
e. An increase in the dividends account.
An account balance is:
a.The total of the credit side of the account.
b. The total of the debit side of the account.
c. The difference between the total debits and total credits for an account including the beginning balance.
d. Assets = liabilities + equity.
e. Always a credit.
2. debit is used to record which of the following:
a. A decrease in an asset account.
b. A decrease in an expense account.
c. An increase in a revenue account.
d. An increase in the common stock account.
e. An increase in the dividends account.
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Related questions
The comparative balance sheet of Whitman Co. at December 31,2016 and 2015, is as follows:
1 | Dec. 31, 2016 | Dec. 31, 2015 | |
2 | Assets | ||
3 | Cash | $918,260.00 | $965,110.00 |
4 | Accounts receivable (net) | â828,050.00 | 761,830.00 |
5 | Inventories | 1,268,550.00 | 1,163,510.00 |
6 | Prepaid expenses | 28,760.00 | 35,720.00 |
7 | Land | 315,810.00 | 479,900.00 |
8 | Buildings | 1,463,300.00 | 900,740.00 |
9 | Accumulated depreciation-buildings | (408,350.00) | (381,910.00) |
10 | Equipment | 512,470.00 | 454,060.00 |
11 | Accumulated depreciation-equipment | (142,270.00) | (159,730.00) |
12 | Total assets | $4,784,580.00 | $4,219,230.00 |
13 | Liabilities and Stockholdersâ Equity | ||
14 | Accounts payable (merchandise creditors) | $922,360.00 | $957,810.00 |
15 | Bonds payable | 270,000.00 | 0.00 |
16 | Common stock, $25 par | 316,000.00 | 116,000.00 |
17 | Paid-in capital: Excess of issue price over parâcommon stock | 775,000.00 | 559,000.00 |
18 | Retained earnings | 2,501,220.00 | 2,586,420.00 |
19 | Total liabilities and stockholdersâ equity | $4,784,580.00 | $4,219,230.00 |
The noncurrent asset, noncurrent liability, and stockholdersâequity accounts for 2016 are as follows:
ACCOUNT Land
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 2016 | ||||||
| Jan. | 1 | Balance | 479,900 | |||
| Apr. | 20 | Realized $152,430 cash from sale | 164,090 | 315,810 |
ACCOUNT Buildings
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 2016 | ||||||
| Jan. | 1 | Balance | 900,740 | |||
| Apr. | 20 | Acquired for cash | 562,560 | 1,463,300 |
ACCOUNT Accumulated DepreciationââBuildings
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 2016 | ||||||
| Jan. | 1 | Balance | 381,910 | |||
| Dec. | 31 | Depreciation for year | 26,440 | 408,350 |
ACCOUNT Equipment
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 2016 | ||||||
| Jan. | 1 | Balance | 454,060 | |||
| 26 | Discarded, no salvage | 47,260 | 406,800 | |||
| Aug. | 11 | Purchased for cash | 105,670 | 512,470 |
ACCOUNT Accumulated Depreciation ââEquipment
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 2016 | ||||||
| Jan. | 1 | Balance | 159,730 | |||
| 26 | Equipment discarded | 47,260 | 112,470 | |||
| Dec. | 31 | Depreciation for year | 29,800 | 142,270 |
ACCOUNT Bonds Payable
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 2016 | ||||||
| May | 1 | Issued 20-year bonds | 270,000 | 270,000 |
ACCOUNT Common Stock $25 par
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 2016 | ||||||
| Jan. | 1 | Balance | 116,000 | |||
| Dec. | 7 | Issued 8,000 shares of common stock for $52 per share | 200,000 | 316,000 |
ACCOUNT Paid-In Capital in Excess of ParââCommonStock
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 2016 | ||||||
| Jan. | 1 | Balance | 559,000 | |||
| Dec. | 7 | Issued 8,000 shares of common stock for $52 per share | 216,000 | 775,000 |
ACCOUNT Retained Earnings
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 2016 | ||||||
| Jan. | 1 | Balance | 2,586,420 | |||
| Dec. | 31 | Net loss | 53,460 | 2,532,960 | ||
| 31 | Cash dividends | 31,740 | 2,501,220 |
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Refer to theLabels and Amount Descriptions list provided for the exact wordingof the answer choices for text entries. Be sure to complete theheading of the statement. In the operating activities section, usethe minus sign to indicate cash outflows, decreases in cash and anet cash outflow, if required. In the investing and financingactivities section, use a minus sign only to indicate a NET cashoutflow for the section.
Labels and Amount Descriptions
| Labels andAmount Descriptions | |
|---|---|
| Cash paid for acquisition ofbuilding | |
| Cash paid for dividends | |
| Cash paid for merchandise | |
| Cash paid for purchase ofequipment | |
| Cash received from customers | |
| Cash received from issuance ofbonds payable | |
| Cash received from issuance ofcommon stock | |
| Cash received from land sold | |
| December 31, 2016 | |
| Decrease in accounts payable | |
| Decrease in accountsreceivable | |
| Decrease in cash | |
| Decrease in inventories | |
| Decrease in prepaid expenses | |
| Decrease in salaries payable | |
| Depreciation | |
| For the Year Ended December 31,2016 | |
| Gain on sale of investments | |
| Gain on sale of land | |
| Increase in accounts payable | |
| Increase in accountsreceivable | |
| Increase in cash | |
| Increase in inventories | |
| Increase in prepaid expenses | |
| Increase in salaries payable | |
| Issuance of common stock foracquisition of building | |
| Issuance of common stock forpurchase of equipment | |
| Issuance of common stock to retirebonds | |
| Loss on sale of investments | |
| Loss on sale of land | |
| Net cash flow from financingactivities | |
| Net cash flow from investingactivities | |
| Net cash flow from operatingactivities | |
| Net cash flow used for financingactivities | |
| Net cash flow used for investingactivities | |
| Net cash flow used for operatingactivities | |
| Net income | |
| Net loss |
Statement of Cash Flows
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Refer to theLabels and Amount Descriptions list provided for the exact wordingof the answer choices for text entries. Be sure to complete theheading of the statement. In the operating activities section, usethe minus sign to indicate cash outflows, decreases in cash and anet cash outflow, if required. In the investing and financingactivities section, use a minus sign only to indicate a NET cashoutflow for the section.
Whitman Co. |
Statement of Cash Flows |
1 | Cash flows from operating activities: | |||
2 | ||||
3 | Adjustments to reconcile net loss to net cash flow fromoperating activities: | |||
4 | ||||
5 | ||||
6 | Changes in current operating assets and liabilities: | |||
7 | ||||
8 | ||||
9 | ||||
10 | ||||
11 | ||||
12 | ||||
13 | Cash flows from investing activities: | |||
14 | ||||
15 | ||||
16 | ||||
17 | ||||
18 | ||||
19 | Cash flows from financing activities: | |||
20 | ||||
21 | ||||
22 | ||||
23 | ||||
24 | ||||
25 | Cash at the beginning of the year | |||
26 | Cash at the end of the year |
