Selected financial information for the Bravo-Zulu Company for the fiscal year ended December 31, 2016 is as follows:
|
Net Income |
$122,500 |
|
Depreciation Expense |
50,000 |
|
Purchases of plant assets |
125,000 |
|
Proceeds on Disposals of plant assets |
20,000 |
|
Loss on Disposal of plant assets |
7,500 |
|
Accounts receivable increased |
2,500 |
|
Accounts payable decreased |
4,000 |
|
Interest expense |
5,000 |
|
Income tax expense |
2,500 |
Additionally, Bravo-Zulu issued stock in exchange for an outstanding note payable of $72,500. The cash balance on January 1, 2016 was $37,000. The January 1, 2016 balance for Retained Earnings was $250,000 and the December 31, 2016 balance for Retained Earnings was $342,500. Use this information to prepare Bravo-Zulu Company's Statement of Cash Flows for the year ended December 31, 2016 using the indirect method.
In: Accounting
Selected financial information for the Bravo Zulu company for the fiscal year ended December 31, 2016 is as follows:
|
Net Income |
$122,500 |
|
Depreciation expense |
50,000 |
|
Purchases of plant assets |
125,000 |
|
Disposals of plants assets |
20,000 |
|
Gain on Disposal of plant assets |
7,500 |
|
Accounts receivable decreased |
2,500 |
|
Accounts payable decreased |
4,000 |
|
Interest expense |
5,000 |
|
Income tax expense |
2,500 |
Additionally, Bravo-Zulu issued stock in exchange for an outstanding note payable of $72,500. The cash balance on January 1, 2016 was $37,000. The January 1, 2016 balance for Retained earnings was $250,000 and the December 31, 2016 balance for Retained Earnings was $342,500. Use this information to prepare Bravo-Zulu Company’s Statement of Cash Flows for the year ended December 31, 2016 using the indirect method.
In: Accounting
On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 10%. Bond issue costs associated with the bonds totaled $20,058.17. Do not round answers.
Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 10% December 31, 2016 First interest payment using the effective interest method December 31, 2016 Amortization of bond issue costs using the straight-line method December 31, 2017 Second interest payment using the effective interest method December 31, 2017 Amortization of bond issue costs using the straight-line method
In: Accounting
Jessica’s office building is destroyed by fire on November 15, 2016. The adjusted basis of the building is $360,000. She receives insurance proceeds of $505,000 on December 12, 2016. (If there is no gain or loss, select "No gain/loss".)
Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2016 for $505,000.
Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2016 for $415,000.
What is her basis for the replacement property in (a) and in (b)?
Calculate Jessica’s realized and recognized gain or loss if she does not invest in replacement property.
b. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2016 for $415,000.
| B | REALIZED GAIN | $145,000 |
| RECOGNIZED GAIN | ???? |
In: Accounting
On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled $27,560.53.
Required: Prepare the journal entries to record the following:
January 1, 2016 Sold the bonds at an effective rate of 7%
December 31, 2016 First interest payment using the effective interest method
December 31, 2016 Amortization of bond issue costs using the straight-line method
December 31, 2017 Second interest payment using the effective interest method
December 31, 2017 Amortization of bond issue costs using the straight-line method
In: Accounting
On april 1, 2016 SBD corp paid $120000 for rent on warehouse space one year in advance. On october 1 2016 SBD corp entered into a lease agreement to rent out its old warehouse space it was no longer using. This agreement calls for SBD to receive $8000 per month from the lessee, due and payable at the end of the 4 month lease term. At december 31 2016 none of the rental payments from the lessee had yet been received.
1) if SBD makes the appropirate adjusting entry how much will be reported on the december 31 2016 income statement for rent expense
2) If SBD makes the appropriate adjusting entry how much will be reported on the december 31 2016 balance ssheet as prepaid rent and rent receivable respectively
In: Accounting
On January 1, 2016, Knorr Corporation issued $800,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled $18,848.31.
Required:
Prepare the journal entries to record the following:
January 1, 2016, Sold the bonds at an effective rate of 7%
December 31, 2016, First interest payment using the effective interest method
December 31, 2016, Amortization of bond issue costs using the straight-line method
December 31, 2017, Second interest payment using the effective interest method
December 31, 2017, Amortization of bond issue costs using the straight-line method
In: Accounting
The notes receivable held by the Tolleson Company on August 3, 2016, are summarized below. On August 4, 2016, Tolleson discounted all of these notes at Neighborhood Bank and Trust at a discount rate of 12 percent. Note No. Date Face Amount Period Interest Rate 31 Apr. 4, 2016 $ 33,000 6 months 10 % 32 June 11, 2016 17,100 120 days 7 % 33 July 31, 2016 14,800 60 days 12 % Compute the net proceeds received from discounting each note. (Use 360 days a year.) Analyze: What is the net interest income or expense to be reported from these transactions assuming all notes are paid when due? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
In: Accounting
The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2016:
| Accounts Receivable | $64,000 | |
| Allowance for Doubtful Accounts | 1,300 | (credit) |
During 2016, sales on credit amounted to $574,000, $551,800 was collected on outstanding receivables and $3,200 of receivables were written off as uncollectible. On December 31, 2016, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance.
| Required: | |
| 1. | Prepare the journal entry necessary to record Shelton’s estimate of bad debt expense for 2016. |
| 2. | Prepare the Accounts Receivable section of Shelton’s December 31, 2016, balance sheet. |
| 3. | Compute Shelton’s receivables turnover. (Round to one decimal place.) |
| 4. | If Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2? |
In: Accounting
On January 1, 2016, Knorr Corporation issued $800,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled $18,848.31. Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 7% December 31, 2016 First interest payment using the effective interest method December 31, 2016 Amortization of bond issue costs using the straight-line method December 31, 2017 Second interest payment using the effective interest method December 31, 2017 Amortization of bond issue costs using the straight-line method
In: Accounting