For Each of the Following Independent Cases,use the Information Provided

question 156

Essay

For each of the following independent cases,use the information provided to calculate the missing cash inflow or cash outflow:
(a.)
$\begin{array}{|l|r|}\hline \text { Interest payable, beginning-year } & \$ 4,200 \\\hline \text { Interest expense } & 26,700 \\\hline \text { Interest payable, year-end } & 3,000 \\\hline \text { Cash paid for interest } & \$ \underline{\quad\quad}\\\hline\end{array}$
(b.)
$$\begin{array} { | l | r | } \hline \text { Prepaid insurance, beginning of year } & \$ 7,000 \\\hline \text { Insurance expense } & 16,800 \\\hline \text { Prepaid insurance, year-end } & 3,400 \\\hline \text { Cash paid for insurance } & \$\underline{\quad\quad} \\\hline\end{array}$$
(c.)
$$\begin{array} { | l | r | } \hline \text { Interest receivable, beginning of year } & \mathbf { 8 0 0 } \\\hline \text { Interest revenue } & 12,600 \\\hline \text { Interest receivable, year-end } & 1,200 \\\hline \text { Cash received for interest } & \$\underline{\quad\quad} \\\hline\end{array}$$
(d.)
$$\begin{array} { | l | r | } \hline \text { Accounts payable, beginning of year } & \$ 60,000 \\\hline \text { Cost of goods sold } & 244,000 \\\hline \text { Merchandise irventory, beginning of year } & 35,000 \\\hline \text { Merchandise inventory, year-end } & 40,500 \\\hline \text { Accounts payable, year-end } & 64,800 \\\hline \text { Cash paid for merchandise } & \$ \underline{\quad\quad}\\\hline\end{array}$$

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Definitions:

Double-Declining-Balance Depreciation

A method of accelerated depreciation in which an asset's book value is reduced at double the rate of its straight-line depreciation.

Retrospective Approach

The retrospective approach in accounting involves restating past financial statements as if a new accounting policy had been in effect in those periods, to provide consistency in financial reporting.

Depreciation Rate

The percentage or method used annually to allocate the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Salvage Value

The estimated residual value of an asset after the asset has reached the end of its useful life.