Norbury Corporation's net income last year was $19,000. The company did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for he year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: $ 13,000 $ (3,500) $ 8,500 $ 23,000 Accounts receivable Inventory Prepaid expenses Accumulated depreciation Liability Accounts: Accounts payable Accrued liabilities $ 12,500 $ (8,000) $ 2,600 Income taxes payable Based solely on this information, the net cash provided by (used in) operating activities under the indirect method on the statement of cash flows would be:
Q: in the blanks Total revenues earned by the company during the year is P900,000 while the expenses…
A: Amount Revenue 900,000 Less: Expenses Salaries Expense 75,000 Utilities Expense…
Q: The net income reported on the income statement for the current year was $320,000. Depreciation…
A: Cash flow statement indiactes the actual flow of cash in the organisation through operating…
Q: a.Compute and explain the adjustment to taxable income that Ross must make due to the change in…
A: Accrual Method: Under accrual method, the income and expenses are recognized as and when it is…
Q: Service Company had net income during the current year of $122,000. The following information was…
A: A cash flow statement is a financial statement that shows how a company's cash and cash equivalents…
Q: South Valley Company’s assets for the current year decreased by P135,000 while its liabilities…
A: An accounting equation refers to a mathematical representation of the transaction. It indicates that…
Q: Mission Manufacturing’s depreciation expense for the most recent year was $72,000 and its net income…
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…
Q: The following trial balance of A Company on December 31, 2003 has been adjusted except for income…
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…
Q: How much Net Income did the company earn during the year
A: The income generated by a business in the course of normal operations, after deducting the direct…
Q: Assume a company had net income of $60,000 that included a gain on the sale of equipment of $4,000.…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: At the beginning of the year, the AAA of Rose, Inc. shows a balance of $682,000. During the year,…
A: I am answering the first question out of multiple submitted questions as per bartleby guidelines.…
Q: For the just completed year, Hanna Company had a net income of $35,000. Balances in the…
A: Workings: Given values: Hanna company had a net income of $ 35000
Q: Pepsico, Inc., the parent company of Frito-Lay snack foods and Pepsi beverages, had the following…
A: Here, Current Ratio = Current Assets / Current Liabilities Quick Ratio = Quick Assets / Current…
Q: During its first year of operations, Yellow Bell Co. provided services to customers for the value of…
A: Under accrual bases of accounting we need to recognize the income and expenses when they actually…
Q: Dayton Corporation began the current year with a retained earnings balance of $32,000. During the…
A: Retained Earnings: The profits that the company has earned less dividend or any other distribution…
Q: The income statement disclosed the following items for the current year: Depreciation expense…
A: Cash flow statement provided information about the cash inflows and cash outflows of the company.…
Q: The income statement disclosed the following items for the current year: Depreciation expense…
A: CFS: It is a financial statement, usually called the statement of cash flows, that represents a fair…
Q: The following items are taken from the financial statements of (X) Company for the year ending…
A: Net = Servive revenue - Salaries expense - Advertising expense - Depreciation expense - Insurance…
Q: The beginning capital balance shown on FDNACCT's Statement of Changes in Owner's Equity is P79,000.…
A: We know that, Total assets = Liabilities + owners equity Total Liabilities = Current and noncurrent…
Q: Rembrandt Paint Company had the following income statement items for the year ended December 31,…
A: A multi-step statement of income divides total income and expenses into operating and quasi…
Q: THE STATEMENT OF PROFIT OR LOSS AND THE STATEMENT OF CHANGES IN EQUITY High Sky Ltd incurred the…
A: The statement of profit or loss is the part of the financial statement prepared at the end of the…
Q: Squires & Johnson, Ltd., recorded €250,000 of depreciation expense in December 2005. Th e most…
A: Accounting: Accounting is a system, or a process of collecting and organizing economic…
Q: Novak Corp.'s net income for the current year was $622000. Depreciation recorded on plant assets was…
A:
Q: Hargreeves Company reported revenues for P273,500 and expenses for P263,800. The owner withdrew…
A: Income statement shows the net income earned by the company for the year. Drawings is the amount…
Q: Micro, Inc., started the year with net fixed assets of $76,175. At the end of the year, there was…
A: Net capital spending refers to those amounts of the company which is used to purchase the new…
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution…
A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization…
Q: The net changes in the statement of financial position accounts of Solar Services, Inc. for the year…
A: The cash flow statement indicates the flow of cash and cash and cash equivalents during the given…
Q: Below are the income statement items from Bertha Company for the year end December 31, 2014 Sales…
A: Income statement is one of the most important financial statement including balance sheet and cash…
Q: The total assets and the total liabilities of Paragon Services are shown below. During the year, no…
A: Accounting equation says that total assets should always be equals to total liabilities and…
Q: Baxter Company reported a net loss of $13,000 for the year ended December 31. During the year,…
A: Under the indirect method to calculate cash flow from operations, net income is reconciled with the…
Q: Squires & Johnson, Ltd., recorded €250,000 of depreciation expense in December 2005. Th e most…
A: Depreciation: It is the measures of wearing out consumption of assets that occur over the time of…
Q: Mayweather reports net income of $330,000 for the year ended December 31. It also reports $106,700…
A: Cash flow statements: - This is defined as the statement which describes the movement of the cash…
Q: The following is a partial trial balance for the Furniture Makers Corporation as of December 31 ,…
A: Multi step income statement segregates operating revenues and expenses from non operating revenues,…
Q: Bruceton Farms Equipment Company had goodwill valued at $80 million on its balance sheet at…
A: Answer This transaction does two things. First, by crediting goodwill, the goodwill account is…
Q: Compute the year-end retained earnings balance.
A: Given information is: The Dayton corporation began the current year with a retained earnings balance…
Q: ance its operations, has no current liabilities, and recognizes depreciation periodically.…
A: An income statement is a financial statement that reveals how lucrative a company was during a…
Q: During the year, Belyk Paving Co. had sales of $2,600,000. Cost of goods sold, administrative and…
A: Calculate the net income as follows:
Q: the beginning of its current fiscal year, Willie Corp's balance sheet show uring the year,…
A: Stockholder's Equity Assets = Liabilities + PIC + RE Beginning $11,600 =…
Q: Burdic Company's net income last year was $70,000. Changes in the company's balance sheet accounts…
A: The cash flow statement is a financial statement that is prepared to analyze the cash activities…
Q: the year? — $980,000 Question: If the total liabilities decreased by $25,000 during a period and…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.…
Q: Required: Construct in good form the operating activities section of the company's statement of…
A: Cash flow statement is one of the important financial statements which summarize the cash inflow and…
Q: The following trial balance of Caloocan Company on December 31, 2003 has been adjusted except for…
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…
Q: Zaire Company had a $26,000 net loss from operations. Depreciation expense for the year was $9,600,…
A: Cash flow statement provided information about the cash inflows and cash outflows of the…
Q: Tired Company’s assets for the current year decreased by P135,000 while its liabilities increased by…
A: As per accounting equation, assets equals to sum of liabilities and shareholders equity.
Q: Changes in various accounts and gains and losses on the sale of assets during the year for Argon…
A: Increase in current assets must be deducted from net income. Decrease in current assets must be…
Q: A business had non-current assets with a carrying amount of $50,000 at the start of the financial…
A: We have the following information: A business had non-current assets with a carrying amount of…
Q: Use the following information for questions. The following items are taken from the financial…
A: Income statement represents the net income of the company. Balance sheet represents all the assets,…
Q: The Income statement disclosed the following items for the current year: Depreciation expense…
A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?Roxannes Delightful Candies, Inc. began the year with a retained earnings balance of $45,000. The company had a great year and earned a net income of $80,000. However, the companys controller determined that it had made an error when calculating depreciation in the preceding year, resulting in an understated depreciation expense amount of $2,000. What is the ending retained earnings balance?Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.
- The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. Open the file CASHFLOW from the website for this book at cengagebrain.com. First, enter the formulas. Then, complete the worksheet in the manner described next. According to the problem, cash increased from 39,600 to 67,210 during the year. This is a 27,610 increase. To record this increase on the worksheet, move to row 17. Since this is the first account you are analyzing, enter the letter a in column C. Then enter 27610 in column D (a debit since cash increased). This brings the year-end balance (column G) to 67,210, its proper balance. Now move to the bottom part of the statement where you see the categories Operating Activities, Investing Activities, and so on. The credit side of the entry has to be entered here. The proper space for this cash entry is on row 59. Enter the letter a in cell E59 and 27610 in cell F59. Notice the totals at the bottom of the page (row 60) now agree. The next account balance that changed is accounts receivable. It increased by 9,035. To enter this change on the worksheet, enter the letter b in cell C18 and 9035 in cell D18 (again, a debit since accounts receivable increased). This brings the year-end balance in column G to 121,250, its proper balance. The change in accounts receivable balance is an operating activity adjustment (as explained in your textbook). Enter the credit side of this entry in cells E34 and F34, and enter the explanation Increase in accounts receivable in cell A34. Note: Your textbook probably shows Net income as the first item under Operating Activities. We will get to that later. The sequence in which you enter items on this worksheet is not important. All other balance sheet accounts must be analyzed in the same manner, placing appropriate debit or credit entries in the top part of the worksheet to obtain the proper balances in column G, and then entering the second side of the entry in the appropriate row on the bottom part of the worksheet. You should use letter references to identify all entries. Also, you must enter a description of the entry in column A under the appropriate activity category. Although a sequence of analyzing the balance sheet from top to bottom is suggested here, this order is not necessary. As mentioned earlier, your textbook may specify a different sequence. Also, note that some accounts may have both debit and credit adjustments to them. The worksheet is not a substitute for a statement of cash flows, but it does provide you with all the numbers you need to properly prepare one. You will be done with your analysis when: a. The individual account balances at December 31, 2013, as shown on the worksheet (column G) equal those shown in the given problem data. b. The transaction column totals are equal (cells D60 and F60). c. The sum of the operating, investing, and financing activities (cell G59) equals the change in cash (cell D59 or F59). When you are finished, enter your name in cell A1. Save your completed file as CASHFLOW2. Print the worksheet when done. Also print your formulas. Check figure: Total credits at 12/31/2013 (cell G31), 860,460.Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended December 31, 2019 and 2020, contained the following errors: In addition, on December 31, 2020, fully depreciated machinery was sold for 10,800 cash, but the sale was not recorded until 2021. There were no other errors during 2019 or 2020, and no corrections have been made for any of the errors. Refer to the information for Shannon Corporation above. Ignoring income taxes, what is the total effect of the errors on the amount of working capital (current assets minus current liabilities) at December 31, 2020? a. working capital overstated by 4,200 b. working capital understated by 5,800 c. working capital understated by 6,000 d. working capital understated by 9,800Johnson, Incorporated, had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for extraordinary repairs Depreciation expense recorded for the year is $15,000. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Johnsons balance sheet resulting from this years transactions? What amount did Johnson report on the income statement for expenses for the year?
- The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. You have been asked to prepare a statement of cash flows for Prime Sports Gear for 2013. Review the worksheet called CASHFLOW that has been provided to assist you in preparing the statement. The worksheet has been designed so that as you make entries in columns D and F, column G will be automatically updated. For example, FORMULA1 should be entered as =B17+D17F17. Columns C and E are to be used to enter letter references for each of the debit and credit entries on the worksheet.Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of $545,000. The company had a great year and earned a net income of $190,000 this year and paid dividends of $14,000. Additionally, the companys controller determined that it had made an error when calculating tax expense in the preceding year, resulting in an understated expense amount of $22,000. What is the ending retained earnings balance?
- 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 extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?