Question

In: Accounting

Cash $ 30,000 $ 40,000 Accounts Receivable 69,000 80,000 Inventory 64,000 50,000 Prepaid Rent 2,000 18,000...

Cash $ 30,000 $ 40,000
Accounts Receivable 69,000 80,000
Inventory 64,000 50,000
Prepaid Rent 2,000 18,000
Total Current Assets $ 165,000 $ 188,000
Land $ 60,000 $ 150,000
Plant and Equipment 575,000 500,000
Accumulated Depreciation (310,000) (250,000)
Total Long-Term Assets $ 325,000 $ 400,000
Total Assets $ 490,000 $ 588,000
Accounts Payable $ 65,000 $ 60,000
Other Accrued Liabilities 50,000 88,000
Total Current Liabilities $ 115,000 $ 148,000
Long-Term Bank Loan Payable $ 75,000 $ 150,000
Total Liabilities $ 190,000 $ 298,000
Common Stock $ 100,000 $ 100,000
Retained Earnings 200,000 190,000
Total Stockholders’ Equity $ 300,000 $ 290,000
Total Liabilities and Stockholders’ Equity $ 490,000 $ 588,000  

Additional Information for 2017: Net Income during the year was $20,000. Dividends of $10,000 were declared and paid during the year. Plant assets that originally cost $50,000 and had a book value of $30,000 were sold during the year for $25,000 in cash. Also, some new plant assets were purchased during the year for cash. Land was sold for $115,000 during the year. (No new Land was purchased during the year.) A portion of the bank loan was repaid during the year. Required: Prepare a statement of cash flows for Tait Corp. for the year-ended December 31, 2017 using the Indirect Method as illustrated in class.

Solutions

Expert Solution

Gain on Sale of Plant Assets = Book Value - Proceed from Sale
Gain on Sale of Plant Assets = $30,000 - $25,000
Gain on Sale of Plant Assets = $5,000

Purchase of Plant Asset = Ending Plant Asset + Cost of Plant Asset sold - Beginning Plant Asset
Purchase of Plant Asset = $575,000 + $50,000 - $500,000
Purchase of Plant Asset = $125,000

Gain on Sale of Land = Proceed from Sale - Cost of Land sold
Gain on Sale of Land = $115,000 - $90,000
Gain on Sale of Land = $25,000

Depreciation Expense = Ending Accumulated Depreciation + Depreciation on Plant Asset sold - Beginning Accumulated Depreciation
Depreciation Expense = $310,000 + $20,000 - $250,000
Depreciation Expense = $80,000

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

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...
Debit Cash 10,600 Accounts receivable 145,000 Prepaid rent 6.500 Inventory 27,000 Equipment 325,000 Costs of goods...
Debit Cash 10,600 Accounts receivable 145,000 Prepaid rent 6.500 Inventory 27,000 Equipment 325,000 Costs of goods sold 190,000 Salaries expense 125,000 Rent expense 18,000 Depreciation expense 25.000 Interest expense 3.200 Advertising expense 1.700 Totals 877000 Credit Accumulated depreciation-equipment 130,000 Accounts payable 35,000 Notes payable-due in three months 32,000 Salaries payable 4,000 Interest payable 1,000 Common stock 230,000 Retained earnings 45,000 Sales revenue 400,000 Totals 877000 3) Prepare the closing entries for China Tea Company for the year ended December 31,...
Debit Cash 10,600 Accounts receivable 145,000 Prepaid rent 6.500 Inventory 27,000 Equipment 325,000 Costs of goods...
Debit Cash 10,600 Accounts receivable 145,000 Prepaid rent 6.500 Inventory 27,000 Equipment 325,000 Costs of goods sold 190,000 Salaries expense 125,000 Rent expense 18,000 Depreciation expense 25.000 Interest expense 3.200 Advertising expense 1.700 Totals 877000 Credit Accumulated depreciation-equipment 130,000 Accounts payable 35,000 Notes payable-due in three months 32,000 Salaries payable 4,000 Interest payable 1,000 Common stock 230,000 Retained earnings 45,000 Sales revenue 400,000 Totals 877000 5) Prepare a classified balance sheet for China Tea Company as of December 31, 2018.
Assume the following: Cash, $100,000; Accounts Receivable, $50,000; Accounts Payable, $50,000; Supplies, $40,000; Equipment, $100,000; Land,...
Assume the following: Cash, $100,000; Accounts Receivable, $50,000; Accounts Payable, $50,000; Supplies, $40,000; Equipment, $100,000; Land, $500,000; Bonds Payable, $1,000,000; Mortgage Payable, $400,000; Inventory, $100,000. Compute both the current and quick ratios. What conclusions can you draw from this data ?
Account Dr Cr Cash 120,000 Accounts Receivable 45,000 Investments 50,000 Inventory 65,000 Prepaid Insurance 10,000 Note...
Account Dr Cr Cash 120,000 Accounts Receivable 45,000 Investments 50,000 Inventory 65,000 Prepaid Insurance 10,000 Note Receivable 50,000 Equipment 190,000 Patent 80,000 A/C Payable 58,000 Unearned Revenue 6,000 Bank Loan Payable 100,000 Common Stock 102,000 Retained Earnings 295,000 Dividends 5,000 Sales 1,620,000 Dividend income 3,000 Cost of Goods Sold 1,000,000 Salaries Exp 300,000 Accounting Exp 75,000 Advt Exp 70,000 Rent Exp 100,000 Utilities Exp 20,000 Miscellaneous Expense 4,000 Total 2,184,000 2,184,000 Prepare adjusting journal entries. a) Audit of cash in...
company uses the following accounts: Cash Income Taxes Payable Accounts Receivable Capital Stock Prepaid Rent Retained...
company uses the following accounts: Cash Income Taxes Payable Accounts Receivable Capital Stock Prepaid Rent Retained Earnings Unexpired Insurance Dividends Office Supplies Income Summary Rental Equipment Rental Fees Earned Accumulated Depreciation: Salaries Expense Rental Equipment Maintenance Expense Notes Payable Utilities Expense Accounts Payable Rent Expense Interest Payable Office Supplies Expense Salaries Payable Depreciation Expense Dividends Payable Interest Expense Unearned Rental Fees Income Taxes Expense Dec. 1 Issued to John and Patty Driver 20,000 shares of capital stock in exchange for...
You have $60,000 in cash, $40,000 in accounts receivable, $100,000 in inventory, $65,000 in accounts payable,...
You have $60,000 in cash, $40,000 in accounts receivable, $100,000 in inventory, $65,000 in accounts payable, $25,000 in accrued expenses on 12/31/2017. What was your net working capital balance on this date?
Cash……………………………………………… $23,000 Accounts Receivable…………………………….. 67,000 Finished Goods………………………………….. 101,000 Work in Process…………………………………. 30,000 Materials ………………………………………… 17,000 Prepaid...
Cash……………………………………………… $23,000 Accounts Receivable…………………………….. 67,000 Finished Goods………………………………….. 101,000 Work in Process…………………………………. 30,000 Materials ………………………………………… 17,000 Prepaid factory Insurance.....……………………… 7,000 Machinery and Equipment (cost)……………… 264,000 Accumulated Depreciation……………………… $70,000 Accounts Payable……………………………….. 97,000 Common Stock……………………………………. 200,000 Retained Earnings……………………………… 142,000 Total ………………………………………… $509,000 $509,000 During May, the following transactions took place: May 1. Purchased raw materials for $45,000 and factory supplies for $3,000 on account. (Record materials and supplies in the materials control account) 2. Received a $50,000 loan from First National Bank to...
Debit Credit Cash 4,400 Accounts Receivable 2,000 Prepaid Insurance 1,600 Equipment 15,000 Accumulated Depreciation - Equipment...
Debit Credit Cash 4,400 Accounts Receivable 2,000 Prepaid Insurance 1,600 Equipment 15,000 Accumulated Depreciation - Equipment 3,000 Accounts Payable 2,400 Note Payable 3,920 Unearned Fees 3,200 Common Stock 5,000 Retained Earnings 2,700 Dividends 2,000 ​ Fees Earned 37,000 Wages Expense 19,000 Depreciation Expense 1,800 Utilities Expense 320 Insurance Expense 700 Maintenance Expense 7,700 Income Tax Expense 2,700    57,220 57,220 Use the Adjusted Trial above to calculate the Net Income (or Net Loss), and the Retained Earnings balance. Format: Enter...
Debit Credit Cash 4,400 Accounts Receivable 2,000 Prepaid Insurance 1,600 Equipment 15,000 Accumulated Depreciation - Equipment...
Debit Credit Cash 4,400 Accounts Receivable 2,000 Prepaid Insurance 1,600 Equipment 15,000 Accumulated Depreciation - Equipment 3,000 Accounts Payable 2,400 Note Payable 3,920 Unearned Fees 3,200 Common Stock 5,000 Retained Earnings 2,700 Dividends 2,000 ​ Fees Earned 37,000 Wages Expense 19,000 Depreciation Expense 1,800 Utilities Expense 320 Insurance Expense 700 Maintenance Expense 7,700 Income Tax Expense 2,700    57,220 57,220 Use the Adjusted Trial above to calculate the Net Income (or Net Loss), and the Retained Earnings balance.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT