Financial Accounting: An Integrated Statements Approach, 2nd Edition

Chapter 3 Accrual Accounting Concepts 111

Exhibit 2

Family Health Care Summary of Transactions and Adjustments for November

Statement of Cash Flows

a. Operating 1, 800

b. Operating 2,400

c. Operating 6,000

d. Financing 5,000

f. Investing 1,700

h. Operating 5,500

i. Operating 4,200

j. Operating  100

k. Operating 4,690

l. Financing 1,200

Increase in cash 410

Nov. 1 cash bal. 7,320

Nov. 30 cash bal. 7,730

Statement of

Cash Flows

Income

Statement

Income Statement

g. 6,100 Fees earned

h. 5,500 Fees earned

k. 2,790 Wages exp.

 8 00 Rent exp.

 58 0 Utilities exp.

100 Interest exp.

420 Misc. exp.

a1.1,100 Insur. exp.

a2. 150 Supp. exp.

a3. 160 Deprec. exp.

a4. 360 Rental rev.

a5. 220 Wages exp.

a6. 750 Fees earned

6,390 Net income

Balances, Nov. 1

a. Rental rev.

b. Paid insurance

c. Paid insurance

d. Investment

e. Pur. supplies

f. Pur. off. equip.

g. Fees earned

h. Fees earned

i. Collected cash

j. Paid on acct.

k. Paid expenses

l. Dividends

a1. Insurance exp.

a2. Supplies exp.

a3. Deprec. exp.

a4. Rental revenue

a5. Wages exp.

a6. Fees earned

Balances, Nov. 30

g.

h.

k.

a1.

a2.

a3.

a4.

a5.

a6.

INTEGRATED FINANCIAL

STATEMENT FRAMEWORK

Balance Sheet

Stockholders’

Assets  Liabilities  Equity

Accts. Prepaid Office Acc. Notes Accts. Wages Unearned Capital Retained

Cash  Rec. Insur.Supp.Equip.Dep.LandPay. Pay.  Pay.RevenueStockEarnings

7,320 12,000 10,000 6,000 3,320

1, 800 1, 800

2,400 2,400

6,000 6,000

5,000 5,000

240 240

1,700 8 ,500 6, 800

6,100 6,100

5,500 5,500

4,200 4,200

 100  100

4,690 4,690

1,200 1,200

1,100 1,100

 150  150

 160  160

 360 360

220  220

750 750

7,730 2,650 7,300 90 8 ,500  160 12,000 16, 800 140 220 1,440 11,000 8 ,510