Strayer Univ ACC 557 Assignment Exercises

Strayer Univ ACC 557 Assignment Exercises in $15 only

Directions: Answer the following questions on a separate Microsoft Word or Excel document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in Blackboard.

Exercises

E13-3. Cushenberry Corporation C had the following transactions.

  • Sold land (cost $12,000) for $15,000.
  • Issued common stock at par for $20,000.
  • Recorded depreciation on buildings for $17,000.
  • Paid salaries of $9,000.
  • Issued 1,000 shares of $1 par value common stock for equipment worth $8,000.
  • Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.

Instructions

For each transaction above, (a) prepare the journal entry, and (b) indicate how it would affect the statement of cash ?ows using the indirect method.

E13-4. Gutierrez Company reported net income of $225,000 for 2015. Gutierrez also reported depreciation expense of $45,000 and a loss of $5,000 on the disposal of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,000 decrease in prepaid expenses.