Use the template below to prepare the Operating Cash Flows section of Brace's Statement of Cash Flows for 2015. If an adjustment is negative, enter itwith a-sign, e.g.. -500. For positive adjustments, just enter the dollar amount, e.g., 500.Net Income6000Adjustments for:Depreciation expense1200Loss on sale of equipmentAccounts receivable1000Inventory2000Prepaid insurance80Accounts payableWages payableUneamed revenueNet Cash from OperatingActivities$8,780 For the fiscal year ended December 31, 2015, Brace Incorporated reported:• Net income of $6,000, which includesDepreciation expense totaling $1,200• A loss on sale of equipment of $200The company did not use or receive cash for any investing or financing activities.Relevant excerpts from Brace's balance sheets for 2015 and 2014 are as follows:Balance atBalance atYear-endYear-end 20142015Accounts Receivable2,000Inventory4,000Prepaid Insurance700Accounts Payable1,000Wages Payable2,900Unearned Revenue6003,0002,0006201,2002,700900

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Description: Use the template below to prepare the Operating Cash Flows section of Brace's Statement of Cash Flows for 2015. If an adjustment is negative, enter itwith a-sign, e.g.. -500. For positive adjustments, just enter the dollar amount, e.g., 500.Net Inco

Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

Business

Accounting

Use the template below to prepare the Operating Cash Flows section of Brace's Statement of Cash Flows for 2015. If an adjustment is negative, enter t with a-sign, e.g.. -500. For positive adjustments, just enter the dollar amount, e.g. 500. Net Income 6000 Adjustments for: Depreciation expense 1200 Loss on sale of equipment Accounts receivable 1000 Inventory 2000 Prepaid insurance 80 Accounts payable Wages payable Uneamed revenue Net Cash from Operating Activities $8,780

Use the template below to prepare the Operating Cash Flows section of Brace's Statement of Cash Flows for 2015. If an adjustment is negative, enter t with a-sign, e.g.. -500. For positive adjustments, just enter the dollar amount, e.g. 500. Net Income 6000 Adjustments for: Depreciation expense 1200 Loss on sale of equipment Accounts receivable 1000 Inventory 2000 Prepaid insurance 80 Accounts payable Wages payable Uneamed revenue Net Cash from Operating Activities $8,780

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11P: A review of Anderson Corporations books indicates that the errors and omissions pertaining to the...

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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.
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 9,800
A review of Anderson Corporations books indicates that the errors and omissions pertaining to the balance sheet accounts shown as follows had not been corrected during the applicable years. The net income per the books is: 2017, 10,000; 2018, 12,000; 2019, 15,000; and 2020, 20,000. No dividends were declared during these years and no adjustments were made to retained earnings. The Retained Earnings balance on December 31, 2020, is 50,000. Omissions Required: Determine the correct net income for the years 2017, 2018, 2019, and 2020, and the adjusted balance sheet accounts as of December 31, 2020. Ignore possible income tax effects.
The comparative statement of financial position for Cullumber Corporation shows the following noncash current asset and liability accounts at March 31: 2018 2017 Accounts receivable $61,000 $43,000 Inventory 70,000 64,000 Accounts payable 35,000 43,000 Dividends payable 1,400 2,300 Cullumber’s income statement reported the following selected information for the year ended March 31, 2018: net income was $280,000, depreciation expense was $60,000, and a loss on the disposal of land was $18,000. Cullumber uses a perpetual inventory system. Calculate net cash provided (used) by operating activities 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).) CULLUMBER CORPORATIONStatement of Cash Flows (Partial)-Indirect Method Operating activities…
In 2017, Wild Corporation reported a net loss of $70,000. Wild’s only net income adjustments were depreciation expense $81,000, and increase in accounts receivable $8,100. Compute Wild’s net cash provided (used) by operating activities.
The following balance sheet is for the Ballyhoo Company forfiscal year-end 2014. Please fill in all missingdata. Assets Liabilities and Equity_____________ Cash $4,300 Accountspayable $2,340 Accounts receivable _____ Notespayable 4,300 Inventories 8,200 Accruals 1,620 Total current assets$14,300 Total currentliabs. _____ Gross plant and equip._____ Long-termbonds _____ Less: accum depr. 5,630 Totaldebt $13,100 Net plant and equip. _____ Common stock(100 shares) 6,300 Retainedearnings _____ Total Common equity $13,800 TotalAssets _______ Preferred Stock _____ Total liabs &equity $30,000
A company had a $21,000 net loss from operations for 2016. Depreciation expenses for 2016 were $8,600 and a 2016 cash dividend of $6,000 was declared and paid. Balance of the current asset and liability accounts at the beginning and end of 2016 follow. Did the company's 2016 operating activity provide or use cash? Why or why not? Use the indirect method to determine the answer. Ending Beginning Cash $3,500 $7,000 Account Receivable $16,000 $25,000 Inventory $50,000 $53,000 Prepaid Expenses $6,000 $9,000 Accounts payable $12,000 $8,000 Accrued Liabilities $5,000…
Your examination of the financial statements of Chan Corporation revealed the following errors were made in the preparation of the 2017 financial statements: a. The depreciation expense in 2017 was recorded as P100,000, instead of P10,000b. Sales made in December 2017 for P150,000 were recorded in January 2018c. Rent paid on April 30, 2017 covering a one-year period was recognized as expense in 2017. Unexpired portion of P40,000 was not recordedat year-endd. Advances from customers amounting to P25,000 were recognized as sales in 2017. The goods were shipped in 2018.e. Salaries totaling to P50,000 was not recorded at year-end. The expense was recorded upon payment in 2018.f. Collections of accounts receivable in 2017 amounting to P20,000 were recorded in 2018.g. The unadjusted net income for 2017 is P650,000 Required: What is the net effect of the errors in the working capital at the end of 2017 and 2018? (TABULATE YOUR ANSWERS AND SHOW THE VALUES)
The following balances were taken from the books of Schimank Corp. on December 31, 2014. Interest revenue $1,20,400 Accumulated depreciation-equipment $56,000 Cash 71,400 Accumulated depreciation-building 39,200 Sales 19,32,000 Notes receivable 2,17,000 Accounts receivable 2,10,000 Selling expenses 2,71,600 Prepaid insurance 28,000 Accounts payable 2,38,000 Sales returns and allowances 2,10,000 Bonds payable 1,40,000 Allowance for doubtful accounts 9,800 Administrative and general expenses 1,35,800 Sales discounts 63,000 Accrued liabilities 44,800 Land 1,40,000 Interest expense 84,000 Equipment 2,80,000 Notes payable 1,40,000 Building 1,96,000 Loss from earthquake damage (extraordinary item) 2,10,000 Cost of goods sold 8,69,400 Common stock 7,00,000 Retained earnings 29,400 Assume the total effective tax rate on all items is 34%. Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.
The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows: Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follows:a. Net income, $332,000b. Depreciation reported on the income statement, $83,400c. Equipment was purchased at a cost of $162,800 and fully depreciated equipment costing $44,800 was discarded, with no salvage realized.d. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty.e. 10,000 shares of common stock were issued at $20 for cash.f. Cash dividends declared and paid, $153,600InstructionsPrepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities