26) Assume Sundry, Inc. used cash to purchase $8,000 of supplies during the current year and had $500 of the supplies left over unused at the end of the accounting period. How would this information be reported on the financial statements of Sundry, Inc.?
The statement of cash flows:
The income statement:
The balance sheet:
27) Assume XYZ Co. used cash to purchase $500 of supplies during the current year and had $200 of the supplies left over unused at the end of the accounting period. In the space provided below, describe how this information would be reported on the financial statements of XYZ Co:
The statement of cash flows:
The income statement:
The balance sheet:
28) Where should a user of accounting information look to evaluate the operating performance of an entity?
29) On October 1, 2011, Sammy Sosa Company borrowed $80,000 cash on an 8-month, 12 % note payable. Interest on the note will be paid when the principal is repaid. On October 1, 2011, the company used the cash to buy $80,000 of equipment. The equipment has a 5-year estimated useful life and zero residual value. Use the space provided below to describe how these transactions will be reported on the company’s financial statements for the year ended December 31, 2011.
The statement of cash flows:
The income statement:
The balance sheet: