Question

Step 24 of 40: Transaction #3 es Shareholder' s ity 2 Your turn: Transaction # 3 Nunya Business has received 25% of the amount you recorded in Transaction #2 as partial payment of Its accounts receivable. After you record this transaction: The amounts will be based on formulas in the worksheet cells, as opposed to numbers that you've calculated outside of Excel and then manually Input The check formula should return TRUE. Make a selection from column to indicate the transaction's impact on cash flow, if any. Choose an account name from column R if appropriate. Horizontalnci e ment Balance Shed Income Statement Chart of Accounts Students We're here to help. Email us at support@studentsexcel.com 29 / 46 0 001/00:30

how would these questions be answered and what are the formulas to use in excel?

The 4 digit id is 6305

Answer 1

Journal entry that will be recorded for above transactions is

1.

	Dr.	Cr.
Cash	63050
Common stock		63050

6305*10=63050

cash issued for issuance of capital will increase cash balance and also increase equity balance.

2.

2	Accounts receivable	52542
	Services revenue	52542

6005*100/12, services given for the current year will be recorded as income and since cash was not received accounts receivable balance will increase.

3.

3	cash	13136
	Accounts receivable	13136

52,542*25%, cash received from accounts receivable will increase cash balance and decrease accounts receivable balance.

4

4	Salary	5254
	cash		5254

52542*10%, salary expense will reduce current period net income and payment made in cash will reduce cash balance.

5

5	Rent	2627
	Cash		2627

52542*5%, rent expense will reduce current period net income and payment made in cash will reduce cash balance.

based on above entries table is populated below:

Entry#1	Assets			=	Liabilities+stockholder's equity
	Cash	+	Accounts Receivable		Accounts Payable	+	Common stock	+	Retained earnings
1	63050						63050
2			52542						52542
3	13136		-13136
4	-5254								-5254
5	-2627								-2627
	68305		39406				63050		44661
	Total assets	=	107,711		Total liab+equity	=	107,711

Profit and Loss
	Income	-	Expense	=	Net Income		Cash flow		Account Name
1							FA- issue of capital is a part of financing activity		Cash- asset, common stock- equity
2	52542				52542		No impact on cash flow as services are provided on credit		Service revenue- Revenue, A/R- Asset
3							OA- cash flow from operations will increase		Cash- asset, A/R- Asset
4			-5254		-5254		OA- cash flow from operations will Decrease		Salaries- Expense, Cash- Asset
5			-2627		-2627		OA- cash flow from operations will Decrease		Rent- Expense, Cash-Asset
			Net Income		44661