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Please Prepare a Statement of Cash Flows for the end of the month

Beginning Balance 41,000

Ending Balance 471,100

Net Income 19,684.80

Company uses Perpetual Inventory System. The following transactions took place in January of 2021. Merchandise inventory consisted of 3,500 units. 1. In order to raise capital, company issued and sold 2,000 shares of 10% preferred stock at 109. 2. Purchased 5,000 units of Zoom at a cost of $15 each plus 8% sales taxes that was not included in the purchase price. Shipping cost was $150. The purchase was on account. 3. Sold 4,500 Zoom to Team America for a price of $25 each in cash. Applicable sales tax rate was 8% which is not included in price. 4. Collected $1000 interest from bank on its saving account in cash. 5. Collected $7,000 on accounts receivable. 6. Purchased a delivery truck (equipment) at a $30,000. Paid $5,000 in cash and signed a note for the remaining at 6% to be paid in 36 equal monthly payments. 7. Recorded $10,000 hurricane losses on equipment. The lost equipment had cost company $15,000 and had accumulated depreciation of $5,000 as of the hurricane. The loss met extraordinary requirements. 8. During an internal audit, company detected that during taking physical inventory at the end of last year for making adjusting entry, supplies on hand was over stated by $4.000. 9. Closed its Mexico branch by selling the branch equipment that had cost $100,000 with accumulated depreciation of $12,000 for $104,000 in cash. 10. Paid $1,400 for utilities expense of the month. 11. Paid salaries of the month, $10,000. Applicable federal income tax rate is 20%, state income tax rate is 6%, FICA tax rate is 7.65%, Federal Unemployment Taxes 0.80%; State Unemployment Taxes 5.40%. 12. Declared and paid $5,000 cash dividends. 13. Fair market value of Investment (available for sale) on Jan. 31, 2021 was $44,000. 14. A physical inventory count indicated that $240 supplies were left. 15. Recorded depreciation expense for the month, $2,000. 16. Recorded accrued income tax expense. Rose Merchandising Company Trial Balance As of January 1, 2021 Credit Debit 41,000 50,000 20,000 52,500 9,500 300,000 Cash Investment (available for sale) Accounts Receivable Merchandise Inventory Supplies Equipment Accumulated Depreciation-equipment Accounts Payable Common Stock, $10 par Retained Earnings Accumulated other Comprehensive Income Treasury Stock (100 shares) Total 40,600 27,000 350,000 52,400 15,000 12,000 485,000 485,000 4 Credit 25,600 108,150 3,000 3 As of January 31, 2021 Accounts Debit 5 Cash 471,100 6 Accounts Receivable 13,000 7 Supplies 240 8 Merchandise Inventory 60,150 9 Equipment 215,000 10 Accumulated Depreciation Equipment 11 Investments (available for sale) 44,000 12 Accounts Payable 13 Sales Tax Payable 14 FICA Tax Payable 765 15 Federal Income Withheld Payable 2,000 16 State Income Withheld Payable 600 17 State Unemployement Tax Payable 540 18 Federal Unemployement Tax Payable 80 19 Notes Payable 20 Income Tax Payable 21 Preffered Stock 22 Common Stock $10 par 23 Retained Earnings 24 Accumulated other Comprehensive Income 25 Treasury Stock (100 shares) 12,000 26 Sales 27 Interest Revenue 28 Gain on Disposal of Mexico Branch 29 Cost of Goods Sold 67,500 30 Losses due to hurricane 10,000 31 Utilities Expense 1,400 32 Salaries Expense 6,015 33 Supplies Expense 5,260 34 Depreciation Expense 2,000 35 Unrealized Holding Loss (available for sale) 6,000 36 Income Tax Expense 7,655 37 Total 925,305 25,000 6,535 218,000 350,000 44,520 15,000 112,500 1,000 16,000 925,305 Da De Company uses Perpetual Inventory System. The following transactions took place in January of 2021. Merchandise inventory consisted of 3,500 units. 1. In order to raise capital, company issued and sold 2,000 shares of 10% preferred stock at 109. 2. Purchased 5,000 units of Zoom at a cost of $15 each plus 8% sales taxes that was not included in the purchase price. Shipping cost was $150. The purchase was on account. 3. Sold 4,500 Zoom to Team America for a price of $25 each in cash. Applicable sales tax rate was 8% which is not included in price. 4. Collected $1000 interest from bank on its saving account in cash. 5. Collected $7,000 on accounts receivable. 6. Purchased a delivery truck (equipment) at a $30,000. Paid $5,000 in cash and signed a note for the remaining at 6% to be paid in 36 equal monthly payments. 7. Recorded $10,000 hurricane losses on equipment. The lost equipment had cost company $15,000 and had accumulated depreciation of $5,000 as of the hurricane. The loss met extraordinary requirements. 8. During an internal audit, company detected that during taking physical inventory at the end of last year for making adjusting entry, supplies on hand was over stated by $4.000. 9. Closed its Mexico branch by selling the branch equipment that had cost $100,000 with accumulated depreciation of $12,000 for $104,000 in cash. 10. Paid $1,400 for utilities expense of the month. 11. Paid salaries of the month, $10,000. Applicable federal income tax rate is 20%, state income tax rate is 6%, FICA tax rate is 7.65%, Federal Unemployment Taxes 0.80%; State Unemployment Taxes 5.40%. 12. Declared and paid $5,000 cash dividends. 13. Fair market value of Investment (available for sale) on Jan. 31, 2021 was $44,000. 14. A physical inventory count indicated that $240 supplies were left. 15. Recorded depreciation expense for the month, $2,000. 16. Recorded accrued income tax expense. Rose Merchandising Company Trial Balance As of January 1, 2021 Credit Debit 41,000 50,000 20,000 52,500 9,500 300,000 Cash Investment (available for sale) Accounts Receivable Merchandise Inventory Supplies Equipment Accumulated Depreciation-equipment Accounts Payable Common Stock, $10 par Retained Earnings Accumulated other Comprehensive Income Treasury Stock (100 shares) Total 40,600 27,000 350,000 52,400 15,000 12,000 485,000 485,000 4 Credit 25,600 108,150 3,000 3 As of January 31, 2021 Accounts Debit 5 Cash 471,100 6 Accounts Receivable 13,000 7 Supplies 240 8 Merchandise Inventory 60,150 9 Equipment 215,000 10 Accumulated Depreciation Equipment 11 Investments (available for sale) 44,000 12 Accounts Payable 13 Sales Tax Payable 14 FICA Tax Payable 765 15 Federal Income Withheld Payable 2,000 16 State Income Withheld Payable 600 17 State Unemployement Tax Payable 540 18 Federal Unemployement Tax Payable 80 19 Notes Payable 20 Income Tax Payable 21 Preffered Stock 22 Common Stock $10 par 23 Retained Earnings 24 Accumulated other Comprehensive Income 25 Treasury Stock (100 shares) 12,000 26 Sales 27 Interest Revenue 28 Gain on Disposal of Mexico Branch 29 Cost of Goods Sold 67,500 30 Losses due to hurricane 10,000 31 Utilities Expense 1,400 32 Salaries Expense 6,015 33 Supplies Expense 5,260 34 Depreciation Expense 2,000 35 Unrealized Holding Loss (available for sale) 6,000 36 Income Tax Expense 7,655 37 Total 925,305 25,000 6,535 218,000 350,000 44,520 15,000 112,500 1,000 16,000 925,305 Da De

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