118.The Ping Corporation was started on January 1, 2013, with the issuance of $20,000 of stock. During 2013, the company provided $30,000 of services on account and collected $18,000 of that amount. Ping incurred $23,000 of expenses, and paid $20,000 of that amount during 2013. On December 31, 2013, Ping paid investors a $800 cash dividend and accrued $2,000 of salary expense.
Required:
1) What is the net income for year ending December 31, 2013?
2) Prepare Ping Corporation's Statement of Cash Flows for the year ended December 31, 2013.
3) What is the balance in Ping's retained earnings account after closing entries are made on December 31, 2013?
119.Consider the following independent scenarios:
a) At January 1, 2013, accounts receivable was $22,000. Cash collected on accounts receivable during 2011 was $15,000. At December 31, 2011, accounts receivable was $30,000.
What were the revenues earned on account during 2011?
b) At January 1, 2013, accounts payable was $19,000. During 2013, expenses on account were $28,000. At December 31, 2013, accounts payable was $15,000.
What was the amount of cash paid on accounts payable during 2013?
c) At January 1, 2013, the balance in the prepaid insurance account was $480. On March 1, 2013, the company paid $2,940 for insurance coverage for the next 12 months. What was the amount of insurance expense for 2013?
d) At January 1, 2013, the balance in the supplies account was $550. At December 31, 2013, the company counted $600 of supplies on hand. The company reported supplies expense in 2013 of $2,300. What was the total of supplies purchases during 2013?
120.Washington Co. began operations on January 1, 2013, by issuing $10,000 in common stock to the stockholders. On March 1, 2013, Washington accepted an advance of $18,000 to provide services for a one-year period beginning April 1. During 2013, services in the amount of $16,000 were provided to customers on account, and 80% of this amount was collected by year-end. During 2013, operating expenses incurred on account were $12,000, and 60% of this amount was paid by year-end. During the year, Washington paid $600 to purchase supplies. By year-end, $540 of the supplies had been used. Dividends to stockholders were $1,000 during the year. During 2013, Washington paid salaries of $14,000, and on December 31, 2013, the company accrued salaries of $1,400.
Washington recorded all appropriate adjusting entries at year end.
1) What would Washington report for service revenue for 2013?
2) What would Washington report for salaries expense for 2013?
3) What would Washington report for supplies expense for 2013?
4) What would the amount be for net cash flows from operating activities for 2013?
5) What is the net income for 2013?
6) What would the balance in the retained earnings account be at December 31, 2013?