Prepare Income statement, owner's Equity and Balance sheet for Freeman Co. for the year ended on Jun 30, 2017 (Note the balance sheet does not balance) Cash Sales 12,600 14,700 23,000 Insurance expense 168,000 Prepaid insurance 25,300 Interest expense 20,500 Depreciation expenses- showroom 6,000 4,000 Accumulated depreciation -Showroom 18,000 35,000 Building 21,800 Showroom Account receivable 15,500 Account payable Fright Out Sales commission 70,000 Rent expense 48,000 Rent revenue 10,500 Sales discount 5,400 7,000 40,000 Unearned rent 9,000 Sales return 150,000 Retain carning 20,000 Office supplies 15,000 Office supplies expense Owner's investment Owner's drawing Merchandise inventory on Jun 30 2017 22,000 5,600 Cost of merchandise sold 85,600 Bank loan (Final payment due in 2025) 20,000 Land 30,000

Prepare Income statement, owner's Equity and Balance sheet for Freeman Co. for the year ended on Jun 30, 2017 (Note the balance sheet does not balance) Cash Sales 12,600 14,700 23,000 Insurance expense 168,000 Prepaid insurance 25,300 Interest expense 20,500 Depreciation expenses- showroom 6,000 4,000 Accumulated depreciation -Showroom 18,000 35,000 Building 21,800 Showroom Account receivable 15,500 Account payable Fright Out Sales commission 70,000 Rent expense 48,000 Rent revenue 10,500 Sales discount 5,400 7,000 40,000 Unearned rent 9,000 Sales return 150,000 Retain carning 20,000 Office supplies 15,000 Office supplies expense Owner's investment Owner's drawing Merchandise inventory on Jun 30 2017 22,000 5,600 Cost of merchandise sold 85,600 Bank loan (Final payment due in 2025) 20,000 Land 30,000

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.33E

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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.
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.
Reading and Interpreting Chipotles Financial Statements Refer to the financial statements for Chipotle reproduced in the chapter and answer the following questions. What was the companys net income for 2014? State Chipotles financial position on December 31, 2014, in terms of the accounting equation. By what amount did Leasehold improvements, property and equipment, net, increase during 2014? Explain what would cause an increase in this item.
Spreadsheet The following 2019 information is available for Payne Company: Partial additional information: The net income for 2019 totaled 1,600. During 2019, the company sold, for 390, equipment that cost 390 and had a book value of 300. The company sold land for 200, resulting in a loss of 40. The remaining change in the Land account resulted from the purchase of land through the issuance of common stock. Required: Making whatever additional assumptions that are necessary, prepare a spreadsheet to support the 2019 statement of cash flows for Payne.
Changes in Owners Equity The following amounts are available from the records of Coaches and Carriages Inc. at the end of the years indicated: Required Compute the changes in Coaches and Carriages owners equity during 2015 and 2016. Compute the amount of Coaches and Carriages net income (or loss) for 2015 assuming that no dividends were paid and the owners made no additional contributions during the year. Compute the amount of Coaches and Carriages net income (or loss) for 2016 assuming that dividends paid during the year amounted to $10,000 and no additional contributions were made by the owners.
Visual Inspection Noble Companys accounting records provided the following changes in account balances and other information for 2019: Additional information: Net income was 9,900. Dividends were declared and paid. Land was sold for 1,700. No land was purchased. A building was purchased for 23,000. No buildings and equipment were sold. Bonds payable were issued at the end of the year. Two hundred shares of stock were issued for 15 per share. The beginning cash balance was 4,800. Required: Using visual inspection, prepare a 2019 statement of cash flows for Noble.
Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2016, are presented in Problem 6-5A. Instructions 1. Prepare a single-step income statement in the format shown in Exhibit 11. 2. Prepare a statement of owners equity. 3. Prepare an account form of balance sheet, assuming that the current portion of the note payable is 50,000. 4. Prepare closing entries as of May 31, 2016.
These items are taken from the financial statements of Oliver Co. at December 31, 2018. Buildings $105,800 Accounts receivable 12,600 Prepaid insurance 3,200 Cash 11,900 Equipment 82,400 Land 61,200 Insurance expense 780 Depreciation expense 5,300 Interest expense 2,600 Common stock 60,000 Retained earnings (January 1, 2017) 40,000 Accumulated depreciation—buildings 45,700 Accounts payable 9,380 Notes payable 93,600 Accumulated depreciation—equipment 18,800 Interest payable 3,600 Service revenue 14,700 Instructions Prepare a classified balance sheet. Assume that $12,600 of the note payable will be paid in 2019.OLIVER COMPANY
A selection of account balance from blue corp. are listed below. All balances are as of December 31,2017, except where noted:Accounts payable $7500Accounts receivable, 1/1/17 $5,250Accumulated depreciation $21500 building 65000Cash 12200Common stock 50000Delivery truck 9500Depreciation expenses 10750Dividends 3650Marketable equity securities 2400Account receivable 12/31/17 7125Inventory, 1/1/17 3050Supplies 5200Salaris 10400Salaris expenses 10400Net sales 61365Rent expenses 7850Retained earnings 1/1/17 25010Equipment 15700Prepaid expenses 2000Cost of goods sold 16350Notes payable (due 2019) 4400Inventory 12/31/17 4750 1) Determine the gross profit ratio?2) Determine the account receivable turnover?3) Determine the inventory turnover?4)Determine the debt to equity ratio as of December 31,2017?
Crane Rental Company had depreciation expenses of $115,000, interest expenses of $115,000, and an EBIT of $1,932,000 for the year ended June 30, 2017. What are the times-interest-earned and cash coverage ratios for this company? (Round answers to 1 decimal place, e.g. 12.5.) Times-interest-earned times Cash coverage ratio times
The following is the ending balances of accounts at June 30, 2018 for Excell Company.Account Title Debits CreditsCash $ 83,000Short-term investments 65,000Accounts receivable 280,000Prepaid expenses (for the next 12 months) 32,000Land 75,000Buildings 320,000Accumulated depreciation—buildings $ 160,000Equipment 265,000Accumulated depreciation—equipment 120,000Accounts payable 173,000Accrued expenses 45,000Notes payable 100,000Mortgage payable 250,000Common stock 100,000Retained earnings 172,000Totals $1,120,000 $1,120,000Additional Information:1. The short-term investments account includes $18,000 in U.S. treasury bills purchased in May. The billsmature in July.2. The accounts receivable account consists of the following:a. Amounts owed by customers $225,000 b. Allowance for uncollectible accounts—trade customers (15,000)c. Nontrade note receivable (due in three years) 65,000 d. Interest receivable on note (due in four months) 5,000Total $280,0003. The notes payable account consists of…
The current sections of Teal Mountain Inc.’s balance sheets at December 31, 2016 and 2017, are presented here. Teal Mountain Inc.’s net income for 2017 was $156,366. Depreciation expense was $27,594. 2017 2016Current assets Cash $107,310 $ 101,178Accounts receivable 81,760 90,958Inventory 171,696 175,784Prepaid expenses 27,594 22,484Total current assets $388,360 $390,404Current liabilities Accrued expenses payable $ 15,330 $ 5,110Accounts payable 86,870 94,024Total current liabilities $102,200 $ 99,134 Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)