Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net income, $120,630. b. Depreciation reported on the income statement, $33,650. c. Equipment was purchased at a cost of $65,820, and fully depreciated equipment costing $18,020 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 6,000 shares of common stock were issued at $18 for cash. Cash dividends declared and paid, $73,510. a. f. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net income, $120,630. b. Depreciation reported on the income statement, $33,650. c. Equipment was purchased at a cost of $65,820, and fully depreciated equipment costing $18,020 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 6,000 shares of common stock were issued at $18 for cash. Cash dividends declared and paid, $73,510. a. f. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1PB: Consider the following situations and determine (1) which type of liability should be recognized...

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Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year). A. A business depreciates a building with a book value of $12,000, using straight-line depreciation, no salvage value, and a remaining useful life of six years. B. An organization has a line of credit with a supplier. The company purchases $35,500 worth of inventory on credit. Terms of purchase are 3/20, n/60. C. An employee earns $1,000 in pay and the employer withholds $46 for federal income tax. D. A customer pays $4,000 in advance for legal services. The lawyer has previously recognized 30% of the services as revenue. The remainder is outstanding.
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?
The net income reported on the income statement for the current year was $311,700. Depreciation recorded on equipment and a building amounted to $93,200 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Line Item Description End of Year Beginning of Year Cash $78,550 $83,260 Accounts receivable (net) 99,600 102,740 Inventories 196,380 177,010 Prepaid expenses 10,920 11,740 Accounts payable (merchandise creditors) 87,740 92,920 Salaries payable 12,650 11,570 Question Content Area a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. blankblankStatement of Cash Flows (partial) Line Item Description Amount Amount Cash flows from (used for) operating activities: $Net income…
The net income reported on the income statement for the current year was P255,800. Depreciation recorded on equipment and a building amounted to P53,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of the year Beginning of the year Cash P 42,000 P 44,200 Accounts receivable (net) 56,400 67,000 Inventories 125,900 112,600 Prepaid expenses 5,800 6,000 Accounts payable (merchandise creditors) 61,400 67,500 Salaries payable 8,300 7,900 Required: Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.
The net income reported on the income statement for the current year was $185,000. Depreciation recorded on equipment and a building amounted to $96,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of YearCash $ 75,000 $ 86,150Accounts receivable (net) 84,550 90,000Inventories 186,200 175,000Prepaid expenses 3,600 4,500Accounts payable (merchandise creditors) 91,500…
Ripley Corporation’s accumulated depreciation—furniture account increased by $7,070, while $2,520 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $5,210 from the sale of land. Reconcile a net income of $109,410 to net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
The net income reported on the income statement for the current year was $312,900. Depreciation recorded on equipment and a building amounted to $93,600 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $81,040 $85,090 Accounts receivable (net) 102,760 105,000 Inventories 202,600 180,900 Prepaid expenses 11,260 12,000 Accounts payable (merchandise creditors) 90,520 94,960 Salaries payable 13,050 11,830 Question Content Area A. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. B. If the direct method had been used, would the net cash flow from operating activities have been the same? yes or no
The net income reported on the income statement for the current year was $290,000. Depreciation recorded on equipment and a building amounted to $150,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $117,600 $135,000 Accounts receivable (net) 132,500 141,100 Inventories 291,900 274,300 Prepaid expenses 5,600 7,100 Accounts payable (merchandise creditors) 143,400 172,400 Salaries payable 11,300 6,300 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for)…
The net income reported on the income statement for the current year was $262,100. Depreciation recorded on equipment and a building amounted to $78,400 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $71,030 $75,290 Accounts receivable (net) 90,070 92,910 Inventories 177,580 160,070 Prepaid expenses 9,870 10,620 Accounts payable (merchandise creditors) 79,340 84,020 Salaries payable 11,440 10,470 a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount to $62,500 for the year. Balances of the current asset and current liabilities accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $56,000 $59,500 Accounts receivable (net) 71,000 73,400 Inventories 140,000 126,500 Prepaid expenses 7,800 8,400 Accounts payable (merchandise creditors) 62,600 66,400 Salaries payable 9,000 8,250 Required: a. Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Operating Activities Section Cash flows from operating activities: Net income $fill in the blank 5fff63fd0fdcfac_2 Adjustments to reconcile net income to net cash flow from operating activities:…
The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount to $62,500 for the year. Balances of the current asset and current liabilities accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $56,000 $59,500 Accounts receivable (net) 71,000 73,400 Inventories 140,000 126,500 Prepaid expenses 7,800 8,400 Accounts payable (merchandise creditors) 62,600 66,400 Salaries payable 9,000 8,250 Required: a. Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Operating Activities Section Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating…
Selected accounts from Han Corporation’s trial balance are as follows. Han Corporation Trial Balance December 31 (Selected Accounts) Debit Credit Cash $160,000 Short-Term Marketable Securities 145,000 Accounts Receivable 25,000 Inventories 90,000 Other Current Assets 20,000 Land 330,000 Buildings 300,000 Accumulated Depreciation-Buildings $40,000 Equipment 144,000 Accumulated Depreciation-Equipment 15,000 Goodwill 40,000 Other Intangible Assets 20,000 Prepare the detailed schedule showing the Property, Plant, and Equipment. Property, Plant, and Equipment, Net $fill in the blank 2 fill in the blank 4 fill in the blank 6 Gross Property, Plant, and Equipment $fill in the blank 7 fill in the blank 9 Total Property, Plant, and Equipment, Net $fill in the blank 10