USA: +1 (725) 712-1730 
Sign in
What are the steps to figure out this problem?
Calculate the unknown amount required in each of the following five independent situations. The answer to situation (a) is given as an illustration: a. Total cash received $3, 650 b. Total cash collected from credit customers $ c. Notes payable repaid during the period $ d. Good and services received from suppliers on account $ e. Net income, assuming that no dividends were paid $
Expert Answer
Answer to Part b.
Cash Collected from Credit Customers = Credit Sales + Beginning Accounts Receivable – Ending Accounts Receivable
Cash Collected from Credit Customers = $16,500 + $9,000 – $9,300
Cash Collected from Credit Customers = $16,200
Answer to Part c.
Notes Payable Repaid during the year = Beginning Notes Payable + Notes issued- Ending Notes Payable
Notes Payable Repaid during the year = $17,500 + $30,000 – $20,000
Notes Payable Repaid during the year = $27,500
Answer to Part d.
Ending Accounts Payable = Beginning Accounts Payable + Goods Purchased – Payment made
$1,720 = $2,500 + Goods Purchased – $2,900
Goods Purchased = $1,720 + $2,900 – $2,500
Goods Purchased = $2,120
Answer to Part e.
Ending Stockholders’ Equity = Beginning Stockholders’ Equity + Capital Contribution + Net Income – Dividend
$46,000 = $29,000 + $5,000 + Net Income – $0
Net Income = $46,000 – $34,000
Net Income = $12,000
