Question

In: Accounting

23-2. December 31 2017                         2016 33,500              &nb

23-2. December 31

2017                         2016

33,500                         13,000 Cash

12,250                         10,000 Accounts Receivable

12,000                         9,000 Inventory

0                                  3,000 Long-Investments

0                                  29,750 Building

0                                  (6,000) Accumalted depreciation on building

45,000                         20,000 Equipment

(2,000)                        (4,500) Accumlated depreciation on equipment

5,000                           9,250 Patents

105,750                       83,500 Total Assets

5,000                           3,000 Accounts Payable

1,000                           5,000 Dividends Payable

4,000                           8,500 Short-term Notes Payables

32,000                         25,000 Long term notes payable

39,000                         30,000 Common stock

6,000                            3,000 Pain-in capital excess of par

18,750                         9,000 Retained Earnings

105,750                       83,500 Total

Additional data related to 2017 are as follows:

1. Long-term investments were sold at 1,700 above their cost.

2. On January 1, 2017 the building was completely destroyed by a flood. Insurance proceeds on the building were $30,000.

3. Equipment that had cost 11,000 and was 40% depreciated was sold for 2,500.

4. Common stock with a par value of 5,000 and a market value of 6,000 was issued to pay off part of the long-term note.

5. A new long-term note was issued for the acquisition of equipment.

6. Equipment was purchased for cash.

7. Dividends were of 7,000 were declared during 2017.

Prepare the statement of cash flows, including any significant non-cash transactions after the reconciliation. (SHOW ALL OF YOUR WORK PLEASE)

Solutions

Expert Solution

Particulars Working $ $
Net Income 18750-9000 9750
Cash by operating activities
Loss on Sale of equipment Adj no 3: 2500 Selling Price - (Cost 11000-Depreciation 40%) 4100
Gain on Building Damage Adj no 2: Insurance 30000-( Cost 29750-Depreciation 6000) -6250
Gain on Sale of Investment Adj No 1: 1700 above cost -1700
Increase in Accounts Receivable -2250
Increase in Accounts Payable 2000
Increase in Inventory -3000
Depreciation Exp Dep on sold equipment 4400-decrease in dep2500 1900
Patent Amortization 4250 -950
8800
Cash by Investing activities
Sale of Investment 4700
Sale of Equipment 2500
Purchase of Equipment Working below -23000
Proceed from Insurance for flood damage 30000 14200
Cash by Financing activities
Payment of Dividend 5000-1000 -4000
Payment of Short Ternm Note paybale 8500-4000 -3500
Cash from Common Stock 5000 -2500
Increase in cash 33500-13000 20500
working:
Opening Balnce of Equipment 20000
Cost of Sold Equipment -11000
Pur of equipment with note 13000 (Increase in note balance)
Balance 22000
Closing Balance 45000
Cash Purchase 23000

Equipment Purchased by Note payable 13000

ekkarill92 answered 9 months ago
Next > < Previous

Related Solutions

23-2. December 31 2017                         2016 33,500              &nb
23-2. December 31 2017                         2016 33,500                         13,000 Cash 12,250                         10,000 Accounts Receivable 12,000                         9,000 Inventory 0                                  3,000 Long-Investments 0                                  29,750 Building 0                                  (6,000) Accumalted depreciation on building 45,000                         20,000 Equipment (2,000)                        (4,500) Accumlated depreciation on equipment 5,000                           9,250 Patents 105,750                       83,500 Total Assets 5,000                           3,000 Accounts Payable 1,000                           5,000 Dividends Payable 4,000                           8,500 Short-term Notes Payables 32,000                         25,000 Long term notes payable 39,000                         30,000 Common stock 6,000                            3,000...
23-2. December 31 2017                         2016 33,500              &nb
23-2. December 31 2017                         2016 33,500                         13,000 Cash 12,250                         10,000 Accounts Receivable 12,000                         9,000 Inventory 0                                  3,000 Long-Investments 0                                  29,750 Building 0                                  (6,000) Accumalted depreciation on building 45,000                         20,000 Equipment (2,000)                        (4,500) Accumlated depreciation on equipment 5,000                           9,250 Patents 105,750                       83,500 Total Assets 5,000                           3,000 Accounts Payable 1,000                           5,000 Dividends Payable 4,000                           8,500 Short-term Notes Payables 32,000                         25,000 Long term notes payable 39,000                         30,000 Common stock 6,000                            3,000...
23-2. December 31 2017                         2016 33,500              &nb
23-2. December 31 2017                         2016 33,500                         13,000 Cash 12,250                         10,000 Accounts Receivable 12,000                         9,000 Inventory 0                                  3,000 Long-Investments 0                                  29,750 Building 0                                  (6,000) Accumalted depreciation on building 45,000                         20,000 Equipment (2,000)                        (4,500) Accumlated depreciation on equipment 5,000                           9,250 Patents 105,750                       83,500 Total Assets 5,000                           3,000 Accounts Payable 1,000                           5,000 Dividends Payable 4,000                           8,500 Short-term Notes Payables 32,000                         25,000 Long term notes payable 39,000                         30,000 Common stock 6,000                            3,000...
Stepfall Ltd had the following ratios at 31 December 2017 and 31 December 2016: 2017 2016...
Stepfall Ltd had the following ratios at 31 December 2017 and 31 December 2016: 2017 2016 Gross profit margin 27% 31% Return on capital employed 15% 22% Current ratio 1.1:1 0.7:1 Acid test ratio 0.8:1 0.6:1 Trade receivable days 33 days 48 days Inventory holding days 42 days 57 days Which ONE of the following statements is TRUE? a) The company’s profitability, working capital management and liquidity have improved. b) The company’s profitability and working capital management have deteriorated but...
Jafan Retailing, Balance Sheet Statement December 31, 2016 & December 31, 2017 2016 2017 Cash $   ...
Jafan Retailing, Balance Sheet Statement December 31, 2016 & December 31, 2017 2016 2017 Cash $    235,000 $    400,000 Accounts Receivable        367,200        325,000 Inventory        450,000        500,200 Prepaid Expenses        120,000        160,000 Long-term investment        100,000        300,000 Equiptment (Net)     1,050,000     1,125,000 Total Assets $ 2,322,200 $ 2,810,200 Accounts Payable $    421,000 $    411,000 Salary Payable        134,000        180,000 Interest Payable        110,000        112,000 Bonds Payable        550,000        560,000 Common Shares...
SPRING TRAINING INC.   Balance Sheet                             December 31, 2017 ASSETS  &nb
SPRING TRAINING INC.   Balance Sheet                             December 31, 2017 ASSETS                                                         LIABILITIES Cash                              $25,000             Accounts Payable                 $50,000 Accounts Rec.                   5,000             Mortgage Payable                 50,000 Inventory                        14,000               Supplies                            2,000             Total Liabilities                                  $100,000 Land                                18,000 Buildings      $220,000                             STOCKHOLDER EQUITY     Acc. Depr. <20,000> 200,000           Equipment     200,000                             Common Stock $5 Par      $30,000     Acc. Depr <14,000> 186,000             Excess of Par                     $300,000                                                                   Retained Earnings               20,000                                                                    Total Equity                                     $350,000 TOTAL ASSETS        $450,000              TOTAL LIAB. & EQUITY        ...
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 presented below. December 31,        2017     2016 Assets Cash $   440,000 $   200,000 Short-term investments 600,000 — Accounts receivable (net) 1,020,000 1,020,000 Inventory 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) 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 $1,440,000 Notes...
KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016...
KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Sales $ 397,455 $ 304,483 $ 211,300 Cost of goods sold 239,268 192,738 135,232 Gross profit 158,187 111,745 76,068 Selling expenses 56,439 42,019 27,892 Administrative expenses 35,771 26,795 17,538 Total expenses 92,210 68,814 45,430 Income before taxes 65,977 42,931 30,638 Income taxes 12,272 8,801 6,220 Net income $ 53,705 $ 34,130 $ 24,418 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and...
Problem 23-2 The comparative balance sheets for Monty Corporation show the following information. December 31 2017...
Problem 23-2 The comparative balance sheets for Monty Corporation show the following information. December 31 2017 2016 Cash $33,700 $13,100 Accounts receivable 12,200 9,900 Inventory 12,000 8,900 Available-for-sale debt investments –0– 3,000 Buildings –0– 30,000 Equipment 45,200 19,800 Patents 5,100 6,200 $108,200 $90,900 Allowance for doubtful accounts $2,900 $4,500 Accumulated depreciation—equipment 2,000 4,500 Accumulated depreciation—building –0– 5,900 Accounts payable 5,100 3,000 Dividends payable –0– 5,000 Notes payable, short-term (nontrade) 3,100 4,100 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000...
Problem 23-2 The comparative balance sheets for Cullumber Corporation show the following information. December 31 2017...
Problem 23-2 The comparative balance sheets for Cullumber Corporation show the following information. December 31 2017 2016 Cash $33,200 $13,000 Accounts receivable 12,200 10,100 Inventory 12,100 8,900 Available-for-sale debt investments –0– 2,900 Buildings –0– 30,100 Equipment 45,300 20,200 Patents 5,000 6,300 $107,800 $91,500 Allowance for doubtful accounts $3,000 $4,500 Accumulated depreciation—equipment 2,000 4,500 Accumulated depreciation—building –0– 6,000 Accounts payable 5,000 2,900 Dividends payable –0– 5,000 Notes payable, short-term (nontrade) 3,000 4,000 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT