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# Acc 557 Week 9 Chapter 13 Homework 5 Acc 557 Week 9 Chapter 13 Homework 5

• Date Submitted: 02/23/2016 07:24 AM
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ACC 557 Week 9 Chapter 13 Homework 5
ACC 557 Week 9 Chapter 13 Homework 5

http://hwcampus.com/shop/acc-557-week-9-chapter-13-homework-5/

Due Week 9 and worth 50 points
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 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 ﬂows 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.
Instructions
Prepare the operating activities section of the statement of cash ﬂows for 2015. Use the indirect method.
Problems

P13-3A. The income statement of Whitlock Company is presented here.
*PLEASE REFER TO ATTACHMENT FOR ADDITIONAL INFORMATION**
• Accounts receivable increased \$200,000 during the year, and inventory decreased \$500,000.
• Prepaid expenses increased \$150,000 during the year.
• Accounts payable to suppliers of merchandise decreased \$340,000 during the year.
• Accrued expenses payable decreased \$100,000 during the year.
• Operating expenses include...