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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 $
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