Money (summary form)
Answer 1
JKRB is an excellent collaborator, always correct and helpful. However, I do not agree with him in answering this question.
Unfortunately, the phrase “procedures for issuing” is on the wrong line. The proceeds from the issue of bonds to be paid are 395,020 provided by a financing activity, but the dividends paid are 63,790 used by a financing activity. So the answer is that 331 230 [395,020 – 63,790] should be reported as net cash generated from financing activities.
answer 2
The Kemper Company
answer 3
Financial activities
obligations to pay
395,020
Dividends paid
63,790
= $458,810 cash used to fund activities
Source(s): Fan Accounting
answer 4
Something is wrong – you say the employee stole $$$; therefore, you would expect the general ledger balance to be GREATER than the reconciled bank balance (bank balance minus outstanding checks plus deposits in transit). This assumes that daily receipts are posted to the general ledger before November 30, 2008 in this example. The rounded and reconciled bank balance is $22,000 – 6,000 = $16,000, but you say the general ledger balance is only $12,000. Please check the question and let me know; your model doesn’t really make sense, because you want to know how much was stolen. REPLY TO NICK – the de facto standard does NOT say that a receivable was accepted in November in payment for a sale; I would agree with you IF I said that, but I didn’t!!! These 101 accounting questions are horribly worded!! I just wanted a clarification on the question…after being a CPA for 20 years, THEN read this question again and see how awful it is!!!