Relationship of cash flows to accrual accounting
(a)The 2015 statement of cash flows of Citation Corporation shows the amount of cash received from customers as $800,000.Comparative balance sheets report accounts receivable to be $70,000 at January 1 and $100,000 at December 31,2015.Compute the amount of net sales reported in Citation Corporation's income statement for 2015: $_______________
(b)The supplementary schedule for noncash investing and financing activities accompanying Citation Corporation's 2015 statement of cash flows disclosed the following: Citation Corporation's 2015 income statement reports a $61,000 loss on the disposal of land.Prepare the journal entry made by Citation in 2015 to record this sale of land.

Question

Relationship of cash flows to accrual accounting
(a)The 2015 statement of cash flows of Citation Corporation shows the amount of cash received from customers as $800,000.Comparative balance sheets report accounts receivable to be $70,000 at January 1 and $100,000 at December 31,2015.Compute the amount of net sales reported in Citation Corporation's income statement for 2015: $_______________
(b)The supplementary schedule for noncash investing and financing activities accompanying Citation Corporation's 2015 statement of cash flows disclosed the following:  Citation Corporation's 2015 income statement reports a $61,000 loss on the disposal of land.Prepare the journal entry made by Citation in 2015 to record this sale of land.

Quizplus · Accepted Answer

The Answer of Relationship of cash flows to accrual accounting
(a)The 2015 statement of cash flows of Citation Corporation shows the amount of cash received from customers as $800,000.Comparative balance sheets report accounts receivable to be $70,000 at January 1 and $100,000 at December 31,2015.Compute the amount of net sales reported in Citation Corporation's income statement for 2015: $_______________
(b)The supplementary schedule for noncash investing and financing activities accompanying Citation Corporation's 2015 statement of cash flows disclosed the following:  Citation Corporation's 2015 income statement reports a $61,000 loss on the disposal of land.Prepare the journal entry made by Citation in 2015 to record this sale of land.

Relationship of Cash Flows to Accrual Accounting