Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781119034681
Author: Weygandt
Publisher: WILEY
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Textbook Question
Chapter 13, Problem 13.3E
Cushenberry Corporation had the following transactions.
1. Sold land (cost $12,000) for $15,000.
2. Issued common stock at par for $20,000.
3. Recorded
4. Paid salaries of $9,000.
5. Issued 1,000 shares of $1 par value common stock for equipment worth $8,000.
6. Sold equipment (cost $10,000,
Instructions
For each transaction above, (a) prepare the
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Presented below is information related to Concord Company
1. On July 6, Concord Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised
value of the property is:
Land
Buildings
Equipment
Total
Concord Company gave 12.500 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per
share on the date of the purchase of the property
2. Concord Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the
building.
Repairs to building
Construction of bases for equipment to be installed later
Driveways and parking lots
Remodeling of office space in building including new partitions and walls
Special assessment by city on land
3. On December 20, the company paid cash for equipment, $234.000, subject to a 2% cash discount, and freight on equipment of
$9.450.
Prepare entries on the books of Concord Company for these transactions. (Do not round intermediate…
For each of the following separate transactions:Â
Sold a building costing $37,000, with $22,800 of accumulated depreciation, for $10,800 cash, resulting in a $3,400 loss.
Acquired machinery worth $12,800 by issuing $12,800 in notes payable.
Issued 1,280 shares of common stock at par for $2 per share.
Note payables with a carrying value of $41,400 were retired for $49,800 cash, resulting in a $8,400 loss.
(a) Prepare the reconstructed journal entry.(b) Identify the effect it has, if any, on the investing section or financing section of the statement of cash flows.
This year, Sigma Inc. generated $662,250 income from its routine business operations. In addition, the corporation sold the following
assets, all of which were held for more than 12 months:
Initial
Sale
Price
O$ 75,000
41,750
Acc.
Basis
Depr.*
$ 149,600 $
103,600
Marketable securities
Production equipment
Business realty:
Land
Building
82,880
237,000
270,000
247,250
210,500
81,000
*Through date of sale.
Required:
a. Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has
no nonrecaptured Section 1231 losses.
b. Recompute taxable income assuming that Sigma sold the securities for $159,200 rather than $75,000.
Chapter 13 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 13 - (a) What is a statement of cash flows? (b) Mark...Ch. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Contrast the advantages and disadvantages of the...Ch. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Prob. 11QCh. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - Prob. 14QCh. 13 - Prob. 15QCh. 13 - During 2017. Doubleday Company converted 1,700.000...Ch. 13 - Prob. 17QCh. 13 - Prob. 18QCh. 13 - Prob. 19QCh. 13 - Prob. 20QCh. 13 - Prob. 21QCh. 13 - Prob. 13.1BECh. 13 - Classify items by activities. (LO 1), C Classify...Ch. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Prob. 13.7BECh. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - The management of Morrow Inc. is trying to decide...Ch. 13 - Prob. 13.12BECh. 13 - Prob. 13.13BECh. 13 - Prob. 13.14BECh. 13 - Prob. 13.1DICh. 13 - Prob. 13.2DICh. 13 - Prob. 13.3DICh. 13 - Tabares Corporation had these transactions during...Ch. 13 - An analysis of comparative balance sheets, the...Ch. 13 - Cushenberry Corporation had the following...Ch. 13 - Prob. 13.4ECh. 13 - The current sections of Scoggin Inc.s balance...Ch. 13 - Prob. 13.6ECh. 13 - Rojas Corporations comparative balance sheets are...Ch. 13 - Here are comparative balance sheets for Velo...Ch. 13 - Prob. 13.9ECh. 13 - Compute net cash provided by operating...Ch. 13 - Suppose a recent income statement for McDonalds...Ch. 13 - Compute cash flow from operating activitiesdirect...Ch. 13 - The following information is taken from the 2017...Ch. 13 - You are provided with the following transactions...Ch. 13 - The following account balances relate to the...Ch. 13 - The income statement of Whitlock Company is...Ch. 13 - Prob. 13.4APCh. 13 - Prob. 13.5APCh. 13 - Prob. 13.6APCh. 13 - Prob. 13.7APCh. 13 - Prob. 13.8APCh. 13 - Prob. 13.9APCh. 13 - Prob. 13.10APCh. 13 - Prob. 13.11APCh. 13 - Prob. 13.1BYPCh. 13 - Prob. 13.2BYPCh. 13 - Comparative Analysis Problem: Amazon.com, Inc. vs....Ch. 13 - Prob. 13.4BYPCh. 13 - Prob. 13.5BYPCh. 13 - Prob. 13.7BYPCh. 13 - Ethics Case Wesley Corp. is a medium-sized...Ch. 13 - Prob. 13.9BYP
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