Cash Hash » Cash Hash » Cash Back » I need some help with accounting questions!!! Please help!?

  #1 ()
: If i'm given total assets, total liabilities and total retained earnings... How do i determine stockholders equity?

If I receive cash from fees earned, will it increase cash from operating activities, investing activities or financing activities or none? Why?



How does monthly rent paid affect accounts in terms of cash and retained earnings?

If a company issues money in capital stock in exchange for cash, what is the effect on accounts?

Using the direct method, howe to I determine cash payments for operating statements? I think it's depreciate expense added to net income but I'm not sure.

Thanks, I appreciate the help... I'm reviewing for a test and these are some of the topics I'm unsure of.
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  #2 ()
: 1. S/E = Assets - Liabilities - R/E

2. None. This is because you received cash for it and it has been included in your net income and therefore there will be no adjustment made for this transaction when you prepare your statement of cash flows.

3. Journal entry for this will be: Dr. Rent Expense and Cr. Cash. Therefore, your cash will decrease and your retained earnings will decrease also.

4. Dr. Cash, Cr. Capital Stock

5. Not sure about the answer to this question as the question is very vague. The direct method involves summarizing how various transactions directly impact cash as opposed to the indirect method which takes net income and then makes adjustments of increase and decreases to various accounts to reconcile to a cash basis.

Let me know if you have more questions. I'm a recent accounting graduate working as an accounting manager.
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  #3 ()
: 1) assets - liabilitys = equity. Retained earnings is a red herring unless information was left out.
2) Operating, unless this is an indirect method question and they are trying to be tricky.
3) Paid or received? which way are we looking? If it's rent expense cash will be used at some point and I guess you could say it will negatively affect retained earning at the close of the accounting year. Although maybe they just want you to say no it won't affect retained earning each month.
4) I assume you mean they issue common stock. DR cash, CR capital stock, maybe paid-in capital also.On the cash flows it's in the financing section, adds to using the indirect method.
5) Net + Depr Exp is for the Indirect method. Example of Direct would be to add decreases in accounts receivable.
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