The management of Banciu Corporation provides you with comparative balance sheets at December 3 1 , 2
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Question:
The management of Banciu Corporation provides you with comparative balance sheets at December X and December X appearing below.
December
XX
Assets
Cash $ $
Accounts receivable
Allowance for uncollectible accounts
Inventories
Machinery and equipment
Accumulated depreciation on machinery and equipment
Leasehold improvements
Accumulated amortization on leasehold improvements
Securities held for plant expansion
Patents
Totals $ $
Liabilities and stockholders equity
Accounts payable $ $
Dividend payable
Current portion of serial bonds payable
serial bonds payablenoncurrent portion
Preferred stock
Common stock
Retained earnings
Totals $ $
Supplemental Information:
The following table presents a comparative analysis of retained earnings as of December X and December X
December
XX
Beginning balance $ $
Net income
Dividends declared
Premium on repurchased preferred Stock
Ending balance
$ $
On December X the board of directors declared a cash dividend of $ per share, payable to holders of common stock on January X
Purchased new machinery for $ In addition, Banciu sold certain machinery it was no longer using for $ The machinery cost $ and had accumulated depreciation of $ at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation.
Purchased preferred shares, par value $ at $ and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings.
Paid $ of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $ during the year ended December X
During X Banciu wrote off accounts receivable totaling $ as uncollectible.
During X Banciu purchased $ of securities that are being held for future plant expansion.
Required:
Prepare the entries in general journal form that would be entered into Taccounts needed to prepare a statement of cash flows from the data given. For example, the first entry would be
Cash OperationsNet income $
Retained earnings $
Prepare a statement of cash flows for Banciu Corporation for X Use the indirect method for presenting cash flow from operations.
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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