Question

In: Accounting

The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable,...

The Balance Sheet of the Illini as of 12/31/20X0:

Assets

Current Assets:

Cash 1,500,000

Accounts receivable, net 18,000

Inventory 50,000

Total current assets 1,568,000

Equipment 90,000

Goodwill 20,000

Total assets $1,678,000

Liabilities and shareholders' equity

Shareholders' equity:

Common stock, 20,000 shares outstanding, $1 par 20,000

Additional paid-in capital 280,000

Retained earnings 1,378,000

Total shareholders' equity 1,678,000

Total liabilities and shareholders' equity 1,678,000

Note that all additional paid-in capital (APIC) sub accounts (e.g., APIC-options and APIC-treasury stock), if any, are tracked in the “Additional paid-in capital” account on the Balance Sheet.

2.2 Part 2

Illini leases another piece of equipment from Cubs Corporation under a four-year lease agreement on 1/1/20x1. The lease specifies annual payments on each 1/1 and the first payment of $10,000 is made on 1/1/20x1. The lease also specifies a 3% annual increase in the lease payments. The equipment has a fair value of $100,000 on 1/1/20x1. The expected useful life of the equipment is 10 years with no residual value. The equipment will be returned to Cubs at the end of the lease term. The implicit rate is 10%.

Date

Account Name

Debit

Credit

1/1/20x1

ROU assets

[A]

Lease obligation

[B]

1/1/20x1

Lease obligation

[C]

Cash

[D]

12/31/20x1

Rental expense

[E]

Accrued interest

[F]

ROU assets

[G]

1/1/20x2

Lease obligation

[H]

Accrued interest

[I]

Cash

[J]

12/31/20x2

Rental expense

[K]

Accrued interest

[L]

ROU assets

[M]

2.2 Part 3

Illini leases equipment to Cardinal Corporation under a four-year lease agreement on 1/1/20x1. The equipment has a net carrying value of $90,000 on Illini’s book on 1/1/20x1. The fair value of the equipment is $132,357. Illini’s initial costs incurred for the lease arrangement is $10,000. The lease specifies annual payments of $36,000 on each 1/1 and beginning 1/1/20x1. The expected useful life of the equipment is five years. The expected residual value of the equipment is $10,000, which is guaranteed by Cardinal. The implicit rate is 10%.

Date

Account Name

Debit

Credit

1/1/20x1

Investment in lease

[A]

COGS

[B]

Selling expense-Initial issuance cost

[C]

Equipment

[D]

Cash

[E]

Sales revenue

[F]

1/1/20x1

Cash

[G]

Investment in lease

[H]

12/31/20x1

Interest receivable

[I]

Interest revenue

[J]

1/1/20x2

Cash

[K]

Interest receivable

[L]

Investment in lease

[M]

12/31/20x2

Interest receivable

[N]

Interest revenue

[O]

Solutions

Expert Solution

2.2 Part 2
Date Account Name Debit Credit
1/1/20x1 ROU assets 100000
Lease obligation 100000
1/1/20x1 Lease obligation 10000
Cash 10000
12/31/20x1 Rental expense 25000
Accrued interest 10000
ROU assets 35000
1/1/20x2 Lease obligation 10300
Accrued interest 10000
Cash 20300
12/31/20x2 Rental expense 25000
Accrued interest 10000
ROU assets 35000
2.2 Part 3
Date Account Name Debit Credit
1/1/20x1 Investment in lease 90000
COGS 132357
Selling expense-Initial issuance cost 10000
Equipment 90000
Cash 10000
Sales revenue 132357
1/1/20x1 Cash 36000
Investment in lease 36000
12/31/20x1 Interest receivable 9000
Interest revenue 9000
1/1/20x2 Cash 36000
Interest receivable 9000
Investment in lease 45000
12/31/20x2 Interest receivable 9000
Interest revenue 9000

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable,...
The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill 20,000 Total assets $1,678,000 Liabilities and shareholders' equity Shareholders' equity: Common stock, 20,000 shares outstanding, $1 par 20,000 Additional paid-in capital 280,000 Retained earnings 1,378,000 Total shareholders' equity 1,678,000 Total liabilities and shareholders' equity 1,678,000 Note that all additional paid-in capital (APIC) sub accounts (e.g., APIC-options and APIC-treasury stock), if any, are tracked...
Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net...
Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net               18,000 Inventory               50,000 Total current assets         1,568,000 Equipment               90,000 Goodwill               20,000 Total assets $1,678,000 Liabilities and shareholders' equity Shareholders' equity: Common stock, 20,000 shares outstanding, $1 par $20,000 Additional paid-in capital            280,000 Retained earnings         1,378,000 Total shareholders' equity         1,678,000 Total liabilities and shareholders' equity $1,678,000 Note that all additional paid-in capital (APIC) sub accounts (e.g., APIC-options...
balance sheet 12/31/2014 12/31/2015 Assets Current Assets Cash in bank $     57,000 $    65,000 Accounts receivable         75,00
balance sheet 12/31/2014 12/31/2015 Assets Current Assets Cash in bank $     57,000 $    65,000 Accounts receivable         75,000        82,000 Inventory         66,000        75,000 Prepaid expenses           6,000          8,000 Total Current Assets $   204,000 $   230,000 Fixed Assets Machinery & equipment $     25,200 $    18,000 Total Fixed Assets (net of depreciation) $     25,200 $    18,000 TOTAL Assets $   229,200 $   248,000 Liabilities and Equity Current Liabilities Accounts payable $     89,000 $    90,000 Total Current Liabilities $     89,000 $    90,000 Long-term Debt Bank loans payable $     62,000 $    50,000 Total Long-term Debt $     62,000 $    50,000 Total Liabilities $   151,000 $   140,000 Owners' Equity         78,200...
Balance Sheet Assets: 12/31/19 Current Assets: Cash $3,000.00 Accounts Receivable 1,250.00 Prepaid Expenses $100.00 Total Current...
Balance Sheet Assets: 12/31/19 Current Assets: Cash $3,000.00 Accounts Receivable 1,250.00 Prepaid Expenses $100.00 Total Current Assets $4,350.00 Non-Current Assets: Property, Plant, and Equipment Land $10,000.00 Buildings 25,000.00 Equipment 15,000.00 Accumulated Depreciation $(12,000.00) Total Property, Plant, and Equipment $38,000.00 Total Assets $42,350.00 Liabilities: Current Liabilities Accounts Payable $100.00 Accrued Expense 150.00 Salary and Wages Payable - Notes Payable - Unearned Revenue $1,500.00 Total Liabilities $1,750.00 Shareholder's Equity Common Stock - $1 par (See Note Below) $15,000.00 Retained Earnings $25,600.00 Total...
Balance Sheet Current assets Cash 1,050,000 Acc receivable not given Inventories 1,500,000 Fixed assets 4,280,000 TOTAL...
Balance Sheet Current assets Cash 1,050,000 Acc receivable not given Inventories 1,500,000 Fixed assets 4,280,000 TOTAL ASSETS 7,500,000 Current liabilities Acc payable not given Long-term debt 2,300,000 Common stock 600,000 Retained earnings 3,960,000 TOTAL LIAB and EQUITY 7,500,000 Income Statement Sales 22,500,000 Operating expense 18,680,000 EBIT 3,820,000 Interest expense 230,000 EBT 3,590,000 Taxes 1,436,000 Net income 2,154,000 What is the firm's quick ratio?
SMC, Inc. Balance Sheet December 31, 2017 Assets Cash ......................................................................................................... $34,500 Accounts receivable ...................................................................
SMC, Inc. Balance Sheet December 31, 2017 Assets Cash ......................................................................................................... $34,500 Accounts receivable ................................................................................ 25,000 Inventory .................................................................................................. 10,000 Supplies ................................................................................................... 200 Total assets.............................................................................................. $69,700 Liabilities and Stockholders’ Equity Liabilities: Accounts payable ............................................................................. $12,000 Salaries payable ............................................................................... 1,000 Income taxes payable ...................................................................... 3,675 Total liabilities.......................................................................................... $16,675 Stockholders’ equity: Capital stock (10,000 shares outstanding).................................... $25,000 Retained earnings ............................................................................ 28,025 Total stockholders’ equity ....................................................................... 53,025 Total liabilities and stockholders’ equity................................................ $69,700 SMC, Inc. Income Statement For the Year Ended December31,2017 Sales revenue .............................................................................................
CAPTAIN JET INC. BALANCE SHEET DECEMBER 31, 2017 Current Assets Cash 41,200 Notes Receivable 16,000 Accounts...
CAPTAIN JET INC. BALANCE SHEET DECEMBER 31, 2017 Current Assets Cash 41,200 Notes Receivable 16,000 Accounts Receivable 38,800 Inventories 40,000 Prepaid Insurance 540 Prepaid Rent 500                Total Current Assets 137,040 Non-Current Assets Long-term Investments      Investments in held-for-maturity securities 51,000      Land held for future development 45,500 Property, Plant, and Equipment      Land 85,000      Buildings 291,000      Less: Accumulated Depreciation (187,500) Intangible Assets      Capitalized Development Costs 8,000      Goodwill 76,000      Other Identifiable Intangible Assets 48,000                ...
Balance Sheet For the Year Ended December 31 Assets Current assets: Cash $7,170 Accounts payable 7,500...
Balance Sheet For the Year Ended December 31 Assets Current assets: Cash $7,170 Accounts payable 7,500 Supplies 2,590 Prepaid insurance 800 Land 24,000 Total current assets $42,060 Property, plant, and equipment: Building $43,700 Equipment 29,250 Total property, plant, and equipment 72,950 Total assets $131,510 Liabilities Current liabilities: Accounts receivable $10,000 Accum. depr.-building 12,525 Accum. depr.-equipment 7,340 Net income 11,500 Total liabilities $41,365 Owner's Equity Wages payable $1,500 Mark Brock, capital 88,645 Total owner's equity 90,145 Total liabilities and owner's equity...
2020/12/31 2019/12/31 Current Assets: Cash $6,100 $7,100 Accounts Receivable 61,500 51,000 Inventory 44,800 63,900 Total Current...
2020/12/31 2019/12/31 Current Assets: Cash $6,100 $7,100 Accounts Receivable 61,500 51,000 Inventory 44,800 63,900 Total Current Assets 112,400 122,000 Property, Plant, and Equipment 155,200 129,900 Less: Accumulated Depreciation (35,200) (24,800) Land 80,600 67,700 Total Assets $313,000 $294,800 Current Liabilities: Accounts Payable 45,800 39,800 Wages Payable 12,000 9,900 Long Term Notes Payable 68,100 78,800 Total Liabilities 125,900 128,500 Stockholders' Equity: Common Stock 130,000 130,000 Retained Earnings 57,100 36,300 Total Stockholders' Equity 187,100 166,300 Total Liabilities & Stockholders' Equity $313,000 $294,800 Sales...
Balance Sheet ASSETS Cash $96,000 Accounts receivable 31,000 Inventory 41,000 Prepaid expenses 18,000 Total current assets...
Balance Sheet ASSETS Cash $96,000 Accounts receivable 31,000 Inventory 41,000 Prepaid expenses 18,000 Total current assets $186,000 Gross plant and equipment 403,000 Accumulated depreciation (69,000) Total assets $520,000 LIABILITIES AND OWNERS' EQUITY Accounts payable $89,000 Accrued liabilities 62,000 Total current liabilities $151,000 Long-term debt 130,000 Common stock 206,000 Retained earnings 33,000 Total liabilities and equity $520,000 Income Statement Sales* $211,000 Cost of goods sold (85,000) Gross profit $126,000 Selling, general, and administrative expenses (27,000) Depreciation expenses (28,000) Operating income $71,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT