1. Business
  2. Accounting
  3. for each transaction below write the net effect on current...

Question: for each transaction below write the net effect on current...

Question details

For each transaction below, write the net effect on Current Assets (CA), Total Equity (E), Gross Profit (GP), Net Income Before Taxes (NIBT), and Cash flows from operating activities (CFO).

  • Write only the effect for the current period.
  • Assume the company is a merchandising firm.
  • If the net effect is negative, include a negative sign. If no effect, write 0.
  • For CFO, positive net inflows are positive, net cash outflows are negative.
  • For classifying interest expense, assume U.S. GAAP conventions.

Transaction

CA

Equity

GP

NI (pretax)

CFO

Accrued $114 of rent expense (on executive offices) which will be paid next year.

Answer

Answer

Answer

Answer

Answer

Paid suppliers $75 for inventory that was delivered last year.

Answer

Answer

Answer

Answer

Answer

Sold gift cards worth $11. Expect redemption within 1 year.

Answer

Answer

Answer

Answer

Answer

Customers buy merchandise (inventory value of $25) for $55 on store credit. Will pay next period. Ignore taxes.

Answer

Answer

Answer

Answer

Answer

Paid $15 of interest expense recognized this period.

Answer

Answer

Answer

Answer

Answer

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution