Refer to the information for Lamberson Company in P21-6 In exercise The following information was taken from

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Refer to the information for Lamberson Company in P21-6
In exercise
The following information was taken from Lamberson Company€™s accounting records:
Refer to the information for Lamberson Company in P21-6In exerciseThe

Additional information for the year:
a.

Refer to the information for Lamberson Company in P21-6In exerciseThe

b. Dividends declared and paid totaled $700.
c. On January 1,2016, convertible preferred stock that had originally been issued at par value were converted into 500 shares of common stock. The book value method was used to account for the conversion.
d. Long term nonmarketable investments that cost $1,600 were sold for $2,300.
f. The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the year. Equipment with a cost of $2,000 and a book value of $300 was sold for $100. The company uses one Accumulated Depreciation account for all depreciable assets.
g. Equipment was purchased at a cost of $16,200.
h. The 12% bonds payable were issued on August 31,2016, at 97. They mature on August 31, 2026. The company uses the straight line method to amortize the discount.
i. Taxable income was less than pretax accounting income, resulting in a $396 increase in deferred taxes payable.
j. Short-term marketable securities were purchased at a cost of $1,300. The portfolio was increased by $300 to a $3,800 fair value at year-end by adjusting the related allowance account
Required:
1. Using the direct method, prepare the operating activities section of the 2016 statement of cash flows for Lamberson.
2. (Optional). If you completed P21 6 earlier, prepare the remaining portion of the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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