1. Prepare journal entries for the selected transactions listed below. 2. Based on the account information...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Prepare journal entries for the selected transactions listed below. 2. Based on the account information in the ledger, the selected transactions below, and the other financial statements, prepare theStatement of Cash Flows for ABC Company for the year ended June 30, 2014 3. Answer questions A-D. 1. PREPARE THE JOURNAL ENTRIES. Some of ABC Company's January transactions are listed below. They have been already been posted to the ledger. a. b. C. d. e. f. 9. Partial list of fiscal year ended June 30, 2014 transactions for ABC Company: a. Issued 5,000 shares of $1 par common stock for cash, $50,000 b. Sold investment for $35,000 of cash. c. Redeemed $55,000 bonds at face value. d. Declared $4,000 in dividends. e. Recorded depreciation on equipment, $18.500 1. Paid $3,500 in cash for dividends g. Purchased equipment for cash, $13,450 PARTIAL JOURNAL Debit Credit DO NOT POST JOURNAL ENTRIES PREPARED IN INSTRUCTION #1 (THEY ARE ALREADY INCLUDED BELOW 7/4/13 activity A bu 6/2014 7/113 6:3014 7/1153 62054 7/113 9- G:20 134 Cash 42480 101850 50000 35000 95030 Supplies Accounts Rec. # 115 5000 50400 9650 Before 3660 3050 2550 After Equipment 86920 13450 100370 0 # 100 62350 Invest. in XYZ Co #120 20000 158060 55000 3500 134509 292260 45750 # 116 4160 Accum. Deprec. #131 20000 b. # 130 9300 18500 2780062014 158060 292260 0 0 d LEDGER Accounts Pay. # 200 22800 3500 Bonds Payable Dividends Pay. # 210 55000 4900 3 Retained Earnings 21500 Cash Dividends 0 3600 6014 4000 4000 Common Stock # 320 700 78 4000 d 12000/14 #220 100000 45000 600/14 PIC in Ex of Par-CS #322 10000 7 5000 a 150000014 20000 72 45000 65000 600/14 # 400 1316073 # 410 2015 Service Revenue Rent Expense 0 Depreciation Exp. # 600 0 18500 18500 24000 24000 Salaries Expense 0 # 500 34000 34000 Supplies Expense 610 0 4160 4160 Gain on Sale 106500 106500 #603 07/ # 620 # 700 7/113 7/4/13 7/413 7/413 07/2013 15000 b 15000 Revenue: ABC Company Income Statement For the Year Ended June 30, 2014 Service revenue Operating expenses Depreciation Expense Rent Expense Supplies Expense Salaries Expense Total operating expenses mcome from operations Other revenue Sain on sale otal other revenue Het income Retained eamings, July 1, 2013 Het income Less: Dividends $ 18500 24000 ncrease in retained earnings Retained earnings, June 30, 2014 $ ABC Company Statement of Retained Earnings For the Year Ended June 30, 2014 4160 34000 $ 15000 40840 4000 FINANCIAL STATEMENTS S 106500 $ 80660 25840 15000 40840 13160 36840 50000 Current assets: Cash Accounts Receivable Supplies Plant Assets: Equipment Total current assets Investments Total Assets Less: Accumulated Depreciation Total plant assets Current liabilities: Accounts Payable Dividends Payable Total current liabilities Long-term liabilities: ABC Company Comparative Balance Sheet June 30, Bonds Payable Total abilities Paid in capital: Assets Retained Earnings Liabilities Stockholders' Equity Common Stack, $1 par, 50,000 authorized Paid in Capital in Excess of Par Total paid in capital Total stockholders' equity Total liabilities and stockholders' equity $ 2014 95030 $ 9650 2550 107230 100370 27800 72570 0 179800 $ 3600 $ 1200 4800 45000 49800 15000 65000 2013 42480 5000 3660 51140 86920 9300 77620 20000 148760 4900 700 5600 100000 105600 10000 20000 80000 30000 50000 13160 130000 43160 179800 $ 148760 Amount of InclDecl Type of Activity (ies) 2. COMPLETE THE STATEMENT OF CASH FLOWS. Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Cash flows from investing activities: Less: Changes in current operating assets and liabilities: Cash flows from financing activities: Less: ABC Company Statement of Cash Flows For the Year Ended June 30, 2014 Cash at beginning of period Cash at end of period 3. QUESTIONS A. If the corporation reported income and expenses using the cash basis (instead of accrual), what impact did operational transactions have on cash? Increase/Decrease B. What was the of largest specific source of cash inflow during the year? C. What was the largest specific source of cash outflow during the year? D. The ending cash balance on the Statement of Cash Flows should match the cash balance on which other financial statement? Amount $ 1. Prepare journal entries for the selected transactions listed below. 2. Based on the account information in the ledger, the selected transactions below, and the other financial statements, prepare theStatement of Cash Flows for ABC Company for the year ended June 30, 2014 3. Answer questions A-D. 1. PREPARE THE JOURNAL ENTRIES. Some of ABC Company's January transactions are listed below. They have been already been posted to the ledger. a. b. C. d. e. f. 9. Partial list of fiscal year ended June 30, 2014 transactions for ABC Company: a. Issued 5,000 shares of $1 par common stock for cash, $50,000 b. Sold investment for $35,000 of cash. c. Redeemed $55,000 bonds at face value. d. Declared $4,000 in dividends. e. Recorded depreciation on equipment, $18.500 1. Paid $3,500 in cash for dividends g. Purchased equipment for cash, $13,450 PARTIAL JOURNAL Debit Credit DO NOT POST JOURNAL ENTRIES PREPARED IN INSTRUCTION #1 (THEY ARE ALREADY INCLUDED BELOW 7/4/13 activity A bu 6/2014 7/113 6:3014 7/1153 62054 7/113 9- G:20 134 Cash 42480 101850 50000 35000 95030 Supplies Accounts Rec. # 115 5000 50400 9650 Before 3660 3050 2550 After Equipment 86920 13450 100370 0 # 100 62350 Invest. in XYZ Co #120 20000 158060 55000 3500 134509 292260 45750 # 116 4160 Accum. Deprec. #131 20000 b. # 130 9300 18500 2780062014 158060 292260 0 0 d LEDGER Accounts Pay. # 200 22800 3500 Bonds Payable Dividends Pay. # 210 55000 4900 3 Retained Earnings 21500 Cash Dividends 0 3600 6014 4000 4000 Common Stock # 320 700 78 4000 d 12000/14 #220 100000 45000 600/14 PIC in Ex of Par-CS #322 10000 7 5000 a 150000014 20000 72 45000 65000 600/14 # 400 1316073 # 410 2015 Service Revenue Rent Expense 0 Depreciation Exp. # 600 0 18500 18500 24000 24000 Salaries Expense 0 # 500 34000 34000 Supplies Expense 610 0 4160 4160 Gain on Sale 106500 106500 #603 07/ # 620 # 700 7/113 7/4/13 7/413 7/413 07/2013 15000 b 15000 Revenue: ABC Company Income Statement For the Year Ended June 30, 2014 Service revenue Operating expenses Depreciation Expense Rent Expense Supplies Expense Salaries Expense Total operating expenses mcome from operations Other revenue Sain on sale otal other revenue Het income Retained eamings, July 1, 2013 Het income Less: Dividends $ 18500 24000 ncrease in retained earnings Retained earnings, June 30, 2014 $ ABC Company Statement of Retained Earnings For the Year Ended June 30, 2014 4160 34000 $ 15000 40840 4000 FINANCIAL STATEMENTS S 106500 $ 80660 25840 15000 40840 13160 36840 50000 Current assets: Cash Accounts Receivable Supplies Plant Assets: Equipment Total current assets Investments Total Assets Less: Accumulated Depreciation Total plant assets Current liabilities: Accounts Payable Dividends Payable Total current liabilities Long-term liabilities: ABC Company Comparative Balance Sheet June 30, Bonds Payable Total abilities Paid in capital: Assets Retained Earnings Liabilities Stockholders' Equity Common Stack, $1 par, 50,000 authorized Paid in Capital in Excess of Par Total paid in capital Total stockholders' equity Total liabilities and stockholders' equity $ 2014 95030 $ 9650 2550 107230 100370 27800 72570 0 179800 $ 3600 $ 1200 4800 45000 49800 15000 65000 2013 42480 5000 3660 51140 86920 9300 77620 20000 148760 4900 700 5600 100000 105600 10000 20000 80000 30000 50000 13160 130000 43160 179800 $ 148760 Amount of InclDecl Type of Activity (ies) 2. COMPLETE THE STATEMENT OF CASH FLOWS. Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Cash flows from investing activities: Less: Changes in current operating assets and liabilities: Cash flows from financing activities: Less: ABC Company Statement of Cash Flows For the Year Ended June 30, 2014 Cash at beginning of period Cash at end of period 3. QUESTIONS A. If the corporation reported income and expenses using the cash basis (instead of accrual), what impact did operational transactions have on cash? Increase/Decrease B. What was the of largest specific source of cash inflow during the year? C. What was the largest specific source of cash outflow during the year? D. The ending cash balance on the Statement of Cash Flows should match the cash balance on which other financial statement? Amount $
Expert Answer:
Answer rating: 100% (QA)
Part 1 a b c d e f g Partial Journal Cash Common Stock Additional paid in ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Prepare journal entries for the following four events (use straight-line amortization). 01/01/07 The Def Co. issued $100,000, five year bonds, carrying a coupon rate of ten percent (10%), interest...
-
Prepare journal entries for the following transactions. 1. Mt. Helen hospital billed the state Medicaid program $365,000 for services provided at its standard billing rate. The prospective payment...
-
Prepare journal entries for the following transactions: a. Acquired computer supplies on account for $800. b. Paid cash for advertisements of $700 c. Collected commissions of $900 on the sale of a...
-
In an organization that has high employee satisfaction, ______. Multiple choice question. customer interactions are forced and scarce employee turnover is high more positive interactions take place...
-
Define R&D according to U.S. GAAP.
-
In Exercises 2228, graph each equation, function, or inequality in a rectangular coordinate system. If two functions are indicated, graph both in the same system. f(x) = |x| and g(x) = |x2|
-
Dairymaid makes organic yogurt. The only ingredients, milk and bacteria cultures, are added at the very beginning of the fermentation process. At month end, Dairymaid has 100,000 cups of yogurt that...
-
Information for Blake Corporations property, plant, and equipment for 2010 is Depreciation Method and Useful Life Building: 150%-declining-balance; 25 years. Machinery and equipment: Straight-line;...
-
Write the function sum2.m that accepts a matrix m and returns the summation of the positive numbers and the summation of the negative numbers in m. The outputs are sum_p, and sum_n. Use the function...
-
Refer to the Big Rig Rental Company case. Design a spreadsheet that will allow the firm to determine the Net Present Value of cash flows over the five-year period. The following exercises refer to...
-
The political influences on the setting of accounting standards are demonstrated in Cortese, Irvine and Kaidonis (2010) as well as Howieson (2011). Required: Select one of the above papers and...
-
In a proposal, what is the purpose of the introduction? What is the purpose of the conclusion? How do they work together to frame the body of a proposal? What are the six moves included in an...
-
James developed a program that allowed salespeople to comment on new directives from the owner of the local car dealership and management. James quickly found that the sales staff became more...
-
You purchased 100 shares of McDonald's Corp. common stock on 04/01/2009 for $57.49 per share. On December 29, 2017 you sold the 100 shares for $172.12 per share. Dividend payment dates and amounts...
-
using Fiedler's Contingency Model discuss the leadership used by when changing Michael's performance. Provide your reasoning. Discuss why the coach's approach did not work based on this same theory...
-
If you were the representative of the airline company, how would you respond to this situation? K-pop artists Tina Kim and Liz Kim were going to Mindanao for a series of concerts. They were boarding...
-
E.G. A loan of $600 000 was obtained from the bank. The terms: the loan is repayable over 5 years in 5 annual installments at an interest rate of 20% per annum. Prepare an amortization schedule and...
-
Is it a breach of fiduciary duty for a director of a real estate investment trust (REIT) negotiating a joint venture on behalf of the REIT with another director for the development of a portfolio of...
-
On April 1, 2019, Sarkar Sailboats sold 15,000 of its 11%, 15-year, R$1,000 face value bonds to yield 12%. Interest payment dates are April 1 and October 1. On April 2, 2020, Sarkar took advantage of...
-
In the extractive industries, businesses may pay dividends in excess of net income. What is the maximum permissible? How can this practice be justified?
-
In January 2019, Janeway AG doubled the amount of its outstanding shares by selling an additional 10,000 shares to finance an expansion of the business. You propose that this information be shown by...
-
What is an off-by-one error?
-
Will the universality of management continue to be true in the future? Why or why not?
-
Describe what a manager does. How does the work of managers differ from that of nonmanagerial employees?
Study smarter with the SolutionInn App