Williams Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

    Estimated uncollectible accounts based on aging
        accounts receivable                                 $ 3,796.00
    Accrued interest income                                      80.00
    Merchandise inventory                                    98,996.13
    Supplies inventory                                          401.25
    Value of prepaid insurance                                  600.00
    Annual depreciation expense-equipment                     7,345.00
    Accrued interest expense                                    150.00
    Prepaid rent income earned                                2,000.00
   

Use the accounting forms and financial statements from the previous exercise. General journal pages are given in the Working Papers.

1. For the current year, journalize the closing entries using page 13 of a general journal.

As stated in this chapter, the operating activities section of the statement of cash flows can be prepared using the direct method or the indirect method. Sun Treasures used the direct method to prepare its statement of cash flows. Nike uses the indirect method. The only difference is in the operating activities section. Look at Nike's Consolidated Statements of Cash Flows in Appendix B. The Cash provided by operations section begins with net income and then makes adjustments not affecting cash and changes in certain other accounts. The operating activities section of Sun Treasures' statement of cash flows lists cash receipts and cash payments. Both companies arrive at an amount of cash flow from operating activities.

INSTRUCTIONS

1. Identify the total of cash provided by operations for Nike for the fiscal year 2016.

What basis is used to prepare the statement of cash flows?

What is used to prove the equality of debits and credits in the general ledger after closing entries are posted?

Julia, a recent college graduate, just prepared a cash flow statement after her first month of employment at Hickman's Hometown Cuisine. Her cash flow statement showed the following for the month of August: cash inflow, $3,269.27 and cash outflow,$2,975.00. Julia also has student loan debt totaling $12,425.00. Julia would like to purchase a new computer. She does not have a savings plan or a retirement plan. Determine the amount of net cash at the end of August. What suggestions would you make for Julia to help her achieve her financial goals?

Explain.

Accounting forms and a partial unadjusted trial balance for Figlmiller Corporation are given in the Working Papers. Figlmiller Corporation collected $30,000 on November 1 for six months' rent. On December 31, 20X1, Figlmiller Corporation has one note receivable outstanding, a 90-day, 5%,$13,000.00 note dated December 1, and one note payable outstanding, a 120-day, 4%, $8,000.00 note dated November 16.

Instructions:

1. Journalize the adjusting entries for accrued interest income, accrued interest expense, and rent earned on December 31. Use page 14 of a general journal.

Refer to the information in the earlier exercise and prepare the journal entries for the following selected transactions of Danica Company for 2015

Jan. 27 Received Lee's payment for principal and interest on the note dated December 13.

Mar. 3 Accepted a $\$ 5,000,10 \%$, 90 -day note dated March 3 in granting a time extension on the pastdue account receivable of Tomas Company.

$~~~~$ 17 Accepted a $\$ 2,000,30$-day, $9 \%$ note dated March 17 in granting $\mathrm{H}$. Cheng a time extension on his past-due account receivable

Apr. 16 Cheng dishonors his note when presented for payment.

May 1 Wrote off the Cheng account against the Allowance for Doubtful Accounts.

June 1 Received the Tomas payment for principal and interest on the note dated March 3.

Handy Hardware Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

Instructions:

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

Adjustment Information, December 31

Estimated uncollectible accounts based on aging accounts receivable         $ 13,832.96 
Accrued interest income                                                          630.00
Merchandise inventory                                                        162,569.00 
Supplies inventory                                                             3,695.00 
Value of prepaid insurance                                                     8,360.00
Annual depreciation expense equipment                                         13,034.00
Accrued interest expense                                                         600.00 
Prepaid rent income earned                                                     4,000.00

Prepare a statement of cash flows for Travel Lite Corporation using the direct method. Use the balance sheet from the previous Work Together exercise and the information below. A form is given in the Working Papers.

Prepare a statement of cash flows for the current year.

Cash balance at the beginning of the period     $39,522.51
Cash receipts during the year:
    Cash from sales$598,236.31 
    Cash from interest                               635.21 
    Cash from rent                                 4,000.00
    Cash from sale of equipment                    1,200.00
    Cash from issuance of stock                   17,500.00
    Cash from issuance of bonds                   10,000.00
Cash payments during the year:
    Cash for inventory                          $375,623.54 
    Cash for salaries and wages                   85,807.14
    Cash for insurance                             4,254.35
    Cash for interest                              1,587.35
    Cash for taxes                                12,885.00
    Cash for rent                                 16,248.65 
    Cash for other operating expenses             95,412.88
    Cash for purchase of equipment                10,549.00 
    Cash for payment of notes payable              2,500.00
    Cash for payment of dividends                 21,200.00

Use the accounting forms and financial statements from the previous exercise to complete this problem. General journal pages are given in the Working Papers.

Instructions:

1. For the current year, journalize the closing entries using page 13 of a general journal.

Ramel Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

Instructions:

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

Adjustment Information, December 31

Estimated uncollectible accounts based on aging accounts receivable         $ 11,020.00
Accrued interest income                                                          160.00
Merchandise inventory                                                        581,489.16 
Supplies inventory                                                               620.01
Value of prepaid insurance                                                     4,000.00
Annual depreciation expense-office equipment                                  10,960.00 
Annual depreciation expense-store equipment                                   10,120.00
Accrued interest expense                                                         625.00
Prepaid rent income earned                                                     6,000.00

Accounting forms and a partial unadjusted trial balance for Figlmiller Corporation are given in the Working Papers. Figlmiller Corporation collected $30,000 on November 1 for six months' rent. On December 31, 20X1, Figlmiller Corporation has one note receivable outstanding, a 90-day, 5%,$13,000.00 note dated December 1, and one note payable outstanding, a 120-day, 4%, $8,000.00 note dated November 16.

Instructions:

3. Journalize the January 1, 20X2, reversing entries for accrued interest income and accrued interest expense on page 15 of a general journal.

Accounting forms and a partial unadjusted trial balance for Figlmiller Corporation are given in the Working Papers. Figlmiller Corporation collected $30,000 on November 1 for six months' rent. On December 31, 20X1, Figlmiller Corporation has one note receivable outstanding, a 90-day, 5%,$13,000.00 note dated December 1, and one note payable outstanding, a 120-day, 4%, $8,000.00 note dated November 16.

Instructions:

7. List the amount of interest expense from this note payable that will be shown on the income statements for 20X1 and 20X2.