Question
In: Accounting
Crane Company's balance sheet accounts as of December 31, 2018 and 2017 and information relating to...
Crane Company's balance sheet accounts as of December 31, 2018
and 2017 and information relating to 2018 activities are presented
below.
| December 31, | |||
| 2018 | 2017 | ||
| Assets | |||
| Cash | $ 438000 | $ 198000 | |
| Short-term investments | 598000 | — | |
| Accounts receivable (net) | 1000000 | 1000000 | |
| Inventory | 1360000 | 1180000 | |
| Long-term investments | 398000 | 598000 | |
| Plant assets | 3380000 | 1980000 | |
| Accumulated depreciation | (898000) | (898000) | |
| Patent | 178000 | 198000 | |
| Total assets |
$6454000 |
$4256000 |
|
| Liabilities and Stockholders' Equity | |||
| Accounts payable and accrued liabilities | $1640000 | $1420000 | |
| Notes payable (nontrade) | 578000 | — | |
| Common stock, $10 par | 1580000 | 1380000 | |
| Additional paid-in capital | 798000 | 498000 | |
| Retained earnings | 1858000 | 958000 | |
| Total liabilities and stockholders' equity |
$6454000 |
$4256000 |
|
Information relating to 2018 activities:
• Net income for 2018 was $1480000.
• Cash dividends of $598000 were declared and paid in 2018.
• Equipment costing $980000 and having a carrying amount of $318000
was sold in 2018 for $358000.
• A long-term investment was sold in 2018 for $318000. There were
no other transactions affecting long-term investments in
2018.
• 20000 shares of common stock were issued in 2018 for $25 a
share.
• Short-term investments consist of treasury bills maturing on
6/30/19.
Net cash provided by Crane’s 2018 operating activities
was
Solutions
Expert Solution
| Calculation of net cash provided by Crane’s 2018 operating activities | |||
| Net Income | $1,480,000.00 | ||
| Depreciation Expense | $662,000.00 | ||
| Gain on sale of equipment | -$40,000.00 | ||
| Gain on sale of long term investment | -$118,000.00 | ||
| Changes in working capital | |||
| Increase in short term investment | -$598,000.00 | ||
| Increase in Inventory | -$180,000.00 | ||
| Increase in Accounts Payable and accrued liabilities | $220,000.00 | -$54,000.00 | |
| Net Cash provided by operating activities | $1,426,000.00 | ||
| Working | |||
| Gain on sale of equipment | |||
| Sale value of equipment | $358,000.00 | ||
| Less : Carrying amount of equipment | $318,000.00 | ||
| Gain on sale of equipment | $40,000.00 | ||
| Gain on sale of investment | |||
| Sale value of investment | $318,000.00 | ||
| Less : Book value of investment | $200,000.00 | ||
| Gain on sale of investment | $118,000.00 | ||
| Depreciation Expense | |||
| Accumulated depreciation as on 2018 | $898,000.00 | ||
| Less : Accumulated depreciation as on 2017 | $898,000.00 | ||
| Add : Accumulated depreciation on sold equipment | $662,000.00 | ||
| Depreciation Expense | $662,000.00 | ||
ekkarill92 answered 11 months agoRelated Solutions
2. Ancy corporation’s balance sheet accounts as of December 31, 2017 and 2016 and information relating...
2. Ancy corporation’s balance sheet accounts as of December 31,
2017 and 2016 and information relating to 2015 activities are
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December 31,
2017
2016
Assets
Cash
$ 440,000
$ 200,000
Short-term investments
600,000
—
Accounts receivable (net)
1,020,000
1,020,000
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1,380,000
1,200,000
Long-term investments
400,000
600,000
Plant assets
3,400,000
2,000,000
Accumulated depreciation
(900,000)
(900,000)
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180,000
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$6,520,000
$4,320,000
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$1,440,000
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Bonita Industries's balance sheet accounts as of December 31, 2021 and 2020 and information relating to...
Bonita Industries's balance sheet accounts as of December 31,
2021 and 2020 and information relating to 2021 activities are
presented below.
December
31,
2021
2020
Assets
Cash
$ 442000
$ 200000
Short-term investments
601000
—
Accounts receivable (net)
1020000
1020000
Inventory
1360000
1180000
Long-term investments
398000
600000
Plant assets
3410000
2000000
Accumulated depreciation
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(902000)
Patent
178000
199000
Total assets
$6507000
$4297000
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$1680000
$1460000
Notes payable...
3020 Corp.'s balance sheet accounts as of December 31, 2020 and 2019 and information relating to...
3020 Corp.'s balance sheet accounts as of December 31, 2020 and
2019 and information relating to 2020 activities are presented
below.
December
31
2020
2019
Assets
Cash
$1,040,000 $ 200,000
Accounts
receivable (net) 1,000,000
1,020,000
Inventory
1,300,000 1,200,000
Long-term
investments(carried at cost)
400,000 600,000
Plant assets
3,400,000 2,000,000
Accumulated
depreciation (800,000) (900,000)
Patent
180,000 200,000
Total
assets $6,520,000 $
4,320,000
Liabilities
and Stockholders' Equity
Accounts
payable and accrued liabilities $1,660,000 ...
Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017,...
Following are selected balance sheet accounts of Del Conte Corp.
at December 31, 2018 and 2017, and the increases or decreases in
each account from 2017 to 2018. Also presented is selected income
statement information for the year ended December 31, 2018, and
additional information.
Selected
Balance Sheet Accounts
2018
2017
Increase
(Decrease)
Assets
Accounts receivable
$
42,000
$
28,000
$
14,000
Property, plant, and
equipment
285,000
251,000
34,000
Accumulated depreciation
(186,000
)
(171,000
)
15,000
Liabilities and
Stockholders’ Equity...
Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017,...
Following are selected balance sheet accounts of Del Conte Corp.
at December 31, 2018 and 2017, and the increases or decreases in
each account from 2017 to 2018. Also presented is selected income
statement information for the year ended December 31, 2018, and
additional information.
Selected Balance Sheet Accounts
2018
2017
Increase
(Decrease)
Assets
Accounts receivable
$
72,000
$
43,000
$
29,000
Property, plant, and equipment
315,000
266,000
49,000
Accumulated depreciation
(216,000
)
(186,000
)
30,000
Liabilities and Stockholders’ Equity...
. At December 31, 2018, Garvey Company reported this information on its balance sheet. Accounts...
. At December 31, 2018, Garvey Company
reported this information on its balance sheet.
Accounts
Receivable $
960,000
Less:
Allowance for Doubtful
Accounts 78,000
During 2019, the company had the
following transactions related to receivables.
1.
Sales on
account $3,600,000
2.
Sales returns and
allowances 50,000
3.
Collection of account
receivables 3,100,000
4.
Write-offs of account receivable deemed
uncollectible 92,000
5.
Recovery of bad debts previously written off as
uncollectible 28,000
Instructions:
(a) Prepare the journal
entries to record each of these five transactions. Assume that...
A) On December 31, 2017, SPK Corp reported the following information on its balance sheet: Accounts...
A) On December 31, 2017, SPK Corp reported the following
information on its balance sheet:
Accounts
Receivable $900,000
Less:
Allowance for Doubtful
Accounts
54,000 (credit)
During 2018, the company had the following transactions:
Sales
on
account $3,000,000
Collections
of accounts
receivables
2,850,000
Write-off
of accounts deemed
uncollectible
60,000
Recovery
of Bad debts previously written
off
12,000
(not
included in collections above)
If bad debts are estimated to be 1.5% of credit sales, determine
the ending balance in the Allowance
for
Doubtful Accounts...
On December 31, 2020, Crane Corporation had the following shareholders’ equity accounts: CRANE CORPORATION Balance Sheet...
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following shareholders’ equity accounts:
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Balance Sheet (partial)
December 31, 2020
Shareholders’ equity
Common shares (unlimited number of shares
authorized, 92,000 issued) $1,033,000
Retained earnings 520,000
Total shareholders’ equity
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During the year, the following transactions
occurred:
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shareholders of record on January 31, payable February 15.
July 1 Announced a 2-for-1 stock split. The market price per share
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Account
Debit (Credit)
Account
Debit (Credit)
Income Taxes Payable
$(3,800)
Additional Paid-in Capital on Preferred
Prepaid Items
1,800
Stock
$(7,900)
Additional Paid-in Capital on Common Stock
(9,300)
Allowance for Doubtful Accounts
(1,600)
Land
12,200
Bonds Payable (due 2020)
(23,000)
Notes Payable (due 2019)
(6,000)
Buildings
57,400
Notes Receivable (due 2018)
16,400
Sinking Fund to Retire Bonds Payable
5,000
Accounts Receivable
12,600...
The December 31, 2017 balance sheet of Barone Company had Accounts Receivable of $400,000 and a...
The December 31, 2017 balance sheet of Barone Company had
Accounts Receivable of $400,000 and a credit balance in Allowance
for Doubtful Accounts of $32,000. During 2018, the following
transactions occurred: sales on account $1,500,000; sales returns
and allowances, $50,000; collections from customers, $1,250,000;
accounts written off $36,000; previously written off accounts of
$6,000 were collected.
If the company uses the percentage of receivables basis to
estimate bad debt expense and determines that uncollectible
accounts are expected to be 8%...
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