Ya Wen Corporation’s accumulated depreciation—equipment account increased by $8,750, while $3,250 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 gain of $18,750 from the sale of investments. Reconcilea net income of $175,000 to net cash flow from operating activities.
Q: On December 31, Strike Company sold one of its batting cages for $13,293. The equipment had an…
A: Sale of Assets - Sale of an assets is an event of that releases company's assets against cash. In…
Q: A company’s statement of profit or loss for the year ended 31 December 20X5 showed a net profit of…
A: We have the following information: Net Profit as on 31 December 20X5: $83,600 It was later found…
Q: . Discuss the appropriate treatment in the financial statements of each of the following. a. Gain…
A: A ) Gain on sale of investment securities ------records in Income statement under gains and other…
Q: On December 31, Strike Company sold one of its batting cages for $198,177. The equipment had an…
A: Net book value = Cost - accumulated depreciation = $233,150 - $34,973 = $198,177
Q: Blanket Corporation sold equipment for cash of $41,000. Accumulated depreciation on the sale date…
A: Depreciation: It is a decrease in the value of the asset due to its normal usage over a specified…
Q: Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common…
A: a. Record the purchase in a horizontal statements model.
Q: For 20X1, Silvertip Construction, Inc., reported income from continuing operations (after tax) of…
A: The partial income statement is used to report information as part of the normal accounting period.
Q: Ripley Corporation's accumulated depreciation furniture account increased by $9,310, while $3,570 of…
A: Cash flow from operating activities is one of the three activities shown in the statement of cash…
Q: Congress Corporation's accumulated depreciation—equipment account increased by $4,700, while $3,000…
A: Cash flow statements determines the actual cash that came into the business through financing,…
Q: Rifhan products use straight-line depreciation on all its depreciable assets. The accounts are…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Ripley Corporation’s accumulated depreciation—furniture account increased by $11,575, while $2,500…
A: When the indirect method of presenting the statement of cash flows is used, the net profit or loss…
Q: Ripley Corporation's accumulated depreciation-equipment account increased by $15,325 while $3,800 of…
A: Cash flow from the operating activity is part of the cash flow statement. It indicates the cash…
Q: XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain…
A: Using indirect method method for cash flow from operating activities, the non cash expenses or…
Q: JBS Inc. recently reported net income of $4,750 and depreciation of $885. How much was its net cash…
A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…
Q: On December 31, Strike Company sold one of its batting cages for $250,452. The equipment had an…
A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…
Q: Ripley Corporation's accumulated depreciation-equipment account increased by $15,325 while $3,800 of…
A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…
Q: Cranston Inc. reported an impairment loss of $200,000 on its income statement for the year ended…
A: Solution: Impairment loss for year 3 = $200000 carrying amount as at 31.12, year 3 after impairment…
Q: A company that was to be liquidated had the following liabilities: Income Taxes $ 15,000 Notes…
A: Total Assets = Current assets + Land + Building Land is secured for notes payable. The question…
Q: EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its…
A: PART A 1)EzTech profit and loss from the sale of company assets are calculated and classified as…
Q: Jada Company had the following transactions during the year. If all transactions were recorded…
A: Introduction: Expense: Amount spent for generating revenue called as Expenses. Example: Rent ,…
Q: The Potter Company reported net income of $225,000 for the current year. Depreciation recorded on…
A: The cash flow statement is prepared to estimate the net cash inflow or outflow from the business…
Q: This year, Sigma Incorporated generated $686,250 income from its routine business operations. In…
A: Section 1231 Gain/losses: Real estate or depreciable business equipment held for more than a year is…
Q: During your examination of the 20x3 financial statements of Goyo Company, the following data were…
A: Disclaimer : "Since you have asked multiple questions, we will answer the first one for you. If…
Q: During your examination of the 20x3 financial statements of Goyo Company, the following data were…
A: During your examination of the 20x3 financial statements of Goyo Company, the following data were…
Q: On July 1, An entity purchased a machine worth 21,000, 000 subject to a 2% cash discount if paid…
A: Note: No discount will be available since payment is made after 120 days.
Q: A company that Income to be liquidated had the following liabilities: Income taxes - 10,000 Notes…
A: Total net free assets = Fair value of current assets + Fair value of Building
Q: Congress Corporation's accumulated depreciation—equipment account increased by $5,000, while $3,200…
A: OPERATING ACTIVITIES OF CASH FLOW EXPLAIN THE SOURCES AND USES OF CASH FROM ONGOING BUSINESS…
Q: On June 30, 2014, Mill Company incurred a PI,000,000 net loss from disposal of a business segment.…
A: Net Income or loss is the computation to find out the earnings post adjusting the impact of indirect…
Q: he retained earnings and liquidated capital of ABC Mining Corporation are P5,000,000 and P1,000,000…
A: Step 1 Maximum amount of dividend is declared is the free profits and retained earnings available to…
Q: For 20X1, Silvertip Construction, Inc., reported income from continuing operations (after tax) of…
A: Income statement shows net income or net loss. It includes the revenues and expenses of the company.…
Q: ower Company owned a service truck that was purchased at the beginning of 2018 for $48,000. It had…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.
Q: York Instruments completed the following transactions and events involving its machinery. Year 1…
A: Calculation of Depreciation year wise is as follows: Resultant table:
Q: During the current year, Omega Products Corporation incurred the following expenditures whichshould…
A: a. The expenditure should be recorded as an expense because the training is provided to employees…
Q: The following information was taken from the fınancial records of ABC Inc.: Equipment, December 31,…
A: Cash paid to purchase equipment during year 2 = Equipment on December 31 , Year 1 + Cost of…
Q: What amount should be reported as noncurrent assets as of December 31, 2021?
A: Non-current assets are those assets of the company which is held by them for a period of more than…
Q: On January 1, a company sold a machine for $5,000 that It had used for several years. The machine…
A: Fixed asset: It is a long-term asset used in the business for long period and is depreciated for its…
Q: On January 2, Alexander Company paid $21,600 to purchase equipment that has a useful life of 6…
A: Lets understand the basics. Adjustment entry is required to pass to record correct amount of revenue…
Q: Eastlund Corporation's accumulated depreciation—equipment account increased by $6,320, while $2,450…
A: Net cash flow from operating activities = Net income + Depreciation expense + Amortization expense -…
Q: XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain…
A: A cash flow statement indicates cash inflow and cash outflow information of a particular time…
Q: Additional data obtained from the income statement and from an examination of the accounts in the…
A: The statement of cash flows prepared using the indirect method shows adjustment of the net income…
Q: On December 31, Strike Company sold one of its batting cages for $22,244. The equipment had an…
A: Depreciation represents the reduction in the value of an asset over a useful life of the asset. The…
Q: Kingston Corporation's accumulated depreciation—equipment account increased by $6,600, while $4,300…
A: Cash flow operating activities are primarily derived from the principle revenue generating…
Q: e and explain the adjustment to taxable income that Ross must make due to the change in accounting…
A:
Q: Mercury Inc. reported net income of $100,000 for 2020. In addition, the income statement reported…
A: A cash flow statement is the one prepared by the company to depict the position of cash and cash…
Q: During the year, Ben Company received a total of P870,000 from its customer, P60,000 of which was…
A: Solution Concept Cash basis Under the cash basis income and expenses are accounted…
Q: Atkins Corporation has provided the following information for the year ended December 31, 2016. The…
A: Investing activities include the purchase & sale of assets and investment, it also includes…
Q: Accounting for Property, Plant and Equipment During the first few days of the year, Coast Company…
A: Cost of acquisition will include all those expenditures incurred to bring the asset to its current…
Ya Wen Corporation’s
a net income of $175,000 to net
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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?Johnson, 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?Statement of Cash Flows A list of Fischer Companys cash flow activities is presented here: a. Patent amortization expense, 3,500 b. Machinery was purchased for 39,500 c. At year-end, bonds payable with a face value of 20,000 were issued for 17,000 d. Net income, 47,200 k. Inventories increased by 15,400 e. Dividends paid, 16,000 f. Depreciation expense, 12,900 g. Preferred stock was issued for 13,600 h. Investments were acquired for 21,000 i. Accounts receivable increased by 4,300 j. Land was sold at cost, 11,000 k. Inventories increased by 15,400 l. Accounts payable increased by 2,700 m. Beginning cash balance, 19,400 Required: Prepare Fischers statement of cash flows.
- 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.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?During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds issued by Makenzie Inc. b. Acquired land valued at 105,000 in exchange for machinery. c. Sold equipment with original cost of 810,000 for 495,000; accumulated depreciation taken on the equipment to the point of sale was 270,000. d. Purchased new machinery for 180,000. e. Purchased common stock in Lemmons Company for 82,500. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?
- 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.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.Eastlund Corporation's accumulated depreciation—equipment account increased by $6,320, while $2,450 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 gain of $13,510 from the sale of investments. Reconcile a net income of $126,300 to net cash flows from operating activities.$fill in the blank 1