Horngren's Accounting, Student Value Edition (12th Edition)
12th Edition
ISBN: 9780134487151
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 16, Problem 6QC
The Plant Assets account and
Learning Objective 2
Star Media sold plant assets at an $11.000 loss. Where on the statement of
- Financing cash flows—cash receipt of $42,000
- Investing cash flows—cash receipt of $53,000
- Investing cash flows—cash receipt of $31,000
- Investing cash flows—cash receipt of $42,000
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
P1-66A. (Learning Objectives 3, 4: Evaluate business operations; construct a statement ofcash flows) The following data come from the financial statements of Mitchell Company forthe year ended March 31, 2019 (in millions):Purchases of property,plant, and equipment for cash.... $ 2,640Net income..................................... 3,020Adjustments to reconcile netincome to net cash providedby operating activities ................ 2,420Revenues........................................ 60,100Cash, beginning of year.................. 220end of year........................... 2,775Other investing cashpayments....................................... $ 195Accounts receivable........................... 650Payment of dividends........................ 265Common stock.................................. 4,900Issuance of common stock................. 190Cash proceeds on sale ofproperty, plant, and equipment..... 25Retained earnings.............................. 12,830Cost of goods…
Direction: Study the given data below and compute for (1) the cash generated/used in financing activities, (2) the net change in cash for the year, and (3) prepare the CFS for the year.
Learning is Fun Company has presented the following in order to aid the account in preparing CFS during the month.
Net income: P200, 000
Depreciation expense: P25, 000
Gain on sale on property and equipment: P100. 000
Decrease in trade and other receivables: P 70, 000
Purchase of property and equipment: P200, 000
Payment of loan from bank: P150, 000
Compute for the cash generated/used in financing activities.
Based on the given above, compute for the net change in cash for the year.
(Learning Objectives 3, 4: Evaluate business operations; construct a statement ofcash flows) The following data come from the financial statements of Tidal Wave Companyfor the year ended March 31, 2019 (in millions):Purchases of property, plant,and equipment for cash.... $ 3,500Net income........................... 3,050Adjustments to reconcile netincome to net cash providedby operating activities ...... 2,380Revenues.............................. 59,400Cash, beginning of year........ 270end of year................. 1,900Other investing cashpayments............................ $ 200Accounts receivable................ 550Payment of dividends............. 360Common stock....................... 4,830Issuance of common stock...... 200Cash proceeds on sale ofproperty, plant, andequipment ......................... 60Cost of goods sold................ 37,410 Retained earnings................... 12,900Requirements1. Prepare Tidal Wave Company’s cash flow statement for the year ended March 31,…
Chapter 16 Solutions
Horngren's Accounting, Student Value Edition (12th Edition)
Ch. 16 - Prob. 1QCCh. 16 - Prob. 2QCCh. 16 - Prob. 3QCCh. 16 - Prob. 4QCCh. 16 - Prob. 5QCCh. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QCCh. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - Prob. 11RQCh. 16 - Prob. 12RQCh. 16 - Prob. 13RQCh. 16 - Prob. 14RQCh. 16 - Prob. 15ARQCh. 16 - Prob. 16BRQCh. 16 - Prob. S16.1SECh. 16 - S16-2 Classifying items on the statement of cash...Ch. 16 - Prob. S16.3SECh. 16 - Prob. S16.4SECh. 16 - Prob. S16.5SECh. 16 - Prob. S16.6SECh. 16 - Prob. S16.7SECh. 16 - Prob. S16.8SECh. 16 - Prob. S16.9SECh. 16 - Prob. S16.10SECh. 16 - Preparing a statement of cash flows using the...Ch. 16 - Prob. S16A.12SECh. 16 - Prob. S16A.13SECh. 16 - Prob. S16A.14SECh. 16 - Prob. S16B.15SECh. 16 - Prob. E16.16ECh. 16 - Prob. E16.17ECh. 16 - Classifying items on the indirect statement of...Ch. 16 - Prob. E16.19ECh. 16 - Prob. E16.20ECh. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Prob. E16.22ECh. 16 - E16-23 Computing the cash effect Learning...Ch. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Identifying and reporting non-cash transactions...Ch. 16 - Prob. E16.26ECh. 16 - Prob. E16A.27ECh. 16 - Prob. E16A.28ECh. 16 - Computing cash flow items—direct method Learning...Ch. 16 - Prob. E16A.30ECh. 16 - Prob. E16B.31ECh. 16 - Prob. P16.32APGACh. 16 - Prob. P16.33APGACh. 16 - Prob. P16.34APGACh. 16 - Prob. P16.35APGACh. 16 - Preparing the statement of cash flows—direct...Ch. 16 - Prob. P16A.37APGACh. 16 - Prob. P16B.38APGACh. 16 - Prob. P16.39BPGBCh. 16 - Prob. P16.40BPGBCh. 16 - Prob. P16.41BPGBCh. 16 - Prob. P16.42BPGBCh. 16 - Prob. P16A.43BPGBCh. 16 - Prob. P16A.44BPGBCh. 16 - Prob. P16B.45BPGBCh. 16 - Prob. P16.46CTCh. 16 - Prob. P16.47CPCh. 16 - Prob. 16.1TIATCCh. 16 - Decision Case 16-1 Theater by Design and Show...Ch. 16 - Ethical Issue 16-1 Moss Exports is having a bad...Ch. 16 - Prob. 16.1FSC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- (Learning Objective 2: Distinguish a capital expenditure from an immediate expense)Identify each of the following items as a capital expenditure, an immediate expense, or neither.1. Constructed a new parking lot on leased property for $300,000.2. Paid property taxes of $75,000 for the first year a new administrative services building wasoccupied.3. Paid dividends of $40,000.4. Paid interest on a six-month note payable that financed the construction of a new plantbuilding, $550,000.5. Purchased equipment for a new manufacturing plant, $6,000,000.6. Paid $90,000 for the installation of the equipment in (5.)7. Repaired plumbing in existing manufacturing plant, paying $27,000.8. Paid $148,000 to tear down an old building on a new manufacturing plant site.9. Purchased new network servers for $29,000.10. Paid maintenance costs of $31,000 on the equipment in (5) during its first year of usearrow_forwardanswer what is asked for. show computations. 1. Learning is Fun Company had current assets amounting to Php 100,000. Noncurrent assets for the year totaled Php 76,000. How much is the company’s total assets? 2. Happy Selling Company’s total liabilities amounted Php 10,000. Total equity had an ending balance of Php 20,000. How much is total assets?arrow_forwardPrepare the Statement of Cash Flows for Smart Touch Learning for the month ended December 31, 2016 from the provided information Cash balance, December 1, 2016 is $18,200 Transactions Dec. 1 The owner contributed an additional $8,100 cash to the business in exchange for capital. 7 Purchased equipment for $2,000 on account. 14 Paid $20,100 cash for land. 17 Paid cash expenses: office rent, $1,500; employees' salaries, $1,500; utilities, $300. 23 The owner withdrew $2,600. 26 Earned service revenue for the month, $5,100, receiving cash.arrow_forward
- (Learning Objective 3: Adjust the accounts for depreciation) Suppose that on January 1Sunbeam Travel Company paid cash of $50,000 for equipment that is expected to remain usefulfor four years. At the end of four years, the equipment’s value is expected to be zero.1. Make journal entries to record (a) the purchase of the equipment on January 1 and (b) annualdepreciation on December 31. Include dates and explanations, and use the following accounts:Equipment, Accumulated Depreciation—Equipment, and Depreciation Expense—Equipment.2. Post to the accounts and show their balances at December 31.3. What is the equipment’s book value at December 31?arrow_forward(Learning Objective 4: Calculate the effects of business transactions on selectedratios) Financial statement data of Greatland Engineering include the following items:Cash ........................................Short-term investments..............Accounts receivable, net............Inventories ................................Prepaid expenses.......................Total assets ...............................Short-term notes payable...........$ 26,00036,00085,000147,0006,000677,00049,000Accounts payable ......................Accrued liabilities......................Long-term notes payable ...........Other long-term liabilities.........Net income................................Number of commonshares outstanding ...........$107,00032,000163,00034,00099,00046,000Requirements1. Calculate Greatland’s current ratio, debt ratio, and earnings per share. Round all ratios totwo decimal places.2. Calculate the three ratios after evaluating the effect of each transaction that follows.Consider each…arrow_forwardE1-21A. (Learning Objectives 3, 4: Apply the accounting equation; evaluate businessoperations) Willow, Inc., has current assets of $220 million; property, plant, and equipmentof $320 million; and other assets totaling $130 million. Current liabilities are $160 million andlong-term liabilities total $380 million.Requirements1. Use these data to write Willow’s accounting equation.2. How much in resources does Willow have to work with?3. How much does Willow owe creditors?4. How much of the company’s assets do the Willow stockholders actually own?arrow_forward
- (Learning Objective 3: Analyze the impact of business transactions on accounts)The following selected events were experienced by either Smith Eldercare Services, Inc., acorporation, or Tony Smith, its major stockholder. State whether each event (1) increased,(2) decreased, or (3) had no effect on the total assets of the business. Identify any specific assetaffected.a. Paid $400 cash on accounts payable.b. Made a cash purchase of land for a building site for the business, $89,000.c. Sold land and received cash of $69,000 (the land was carried on the company’s books at$69,000).d. Received $15,400 cash from customers on account.e. Purchased medical equipment and signed a $90,000 promissory note in payment.f. Purchased a flat-screen TV for Smith’s home.g. Paid Smith a cash dividend of $4,000.h. Purchased office supplies on account for $1,200.i. Borrowed $62,000 from the bank for use in the business.j. Received $12,000 cash and issued stock to a stockholder.arrow_forwardS3-1. (Learning Objective 1: Explain how accrual accounting differs from cash-basisaccounting) Southeast Corporation made sales of $950 million during 2018. Of this amount,Southeast collected cash for $876 million. The company’s cost of goods sold was $260 million,and all other expenses for the year totaled $275 million. Also during 2018, Southeast paid $410million for its inventory and $250 million for everything else. Beginning cash was $75 million.a. How much was Southeast’s net income for 2018?b. How much was Southeast’s cash balance at the end of 2018?arrow_forwardE1-31A. (Learning Objective 4: Construct an income statement, statement of retainedearnings, and balance sheet) During 2018, Edwin Company earned revenues of $150million. Edwin incurred, during that same year, salary expense of $34 million, rent expenseof $23 million, and utilities expense of $16 million. Edwin declared and paid dividends of$16 million during the year. At December 31, 2018, Edwin had cash of $185 million, accountsreceivable of $70 million, property and equipment of $35 million, and other long-term assetsof $22 million. At December 31, 2018, the company owed accounts payable of $56 millionand had a long-term note payable of $26 million. Edwin began 2018 with a balance in retainedearnings of $73 million. At December 31, 2018, Edwin had total stockholders’ equity of$230 million, which consisted of common stock and retained earnings. Edwin has a year-end ofDecember 31. Prepare the following financial statements (with proper headings) for 2018:1. Income statement,2.…arrow_forward
- E3-18A. (Learning Objectives 1, 2: Explain how accrual accounting differs from cash-basisaccounting; apply the revenue and expense recognition principles) During 2018, Able Network,Inc., which designs network servers, earned revenues of $820 million. Expenses totaled $520million. Able collected all but $20 million of the revenues and paid $610 million on its expenses.a. Under accrual accounting, what amount of revenue should Able report for 2018? Howdoes the revenue principle help to answer this question?b. Under accrual accounting, what amount of total expense should Able report for 2018?Which accounting principle helps to answer this question?c. Redo parts a and b using the cash basis. Explain how the accrual basis differs from thecash basis.d. Which financial statement reports revenues and expenses? Which statement reports cashreceipts and cash payments?arrow_forward(Learning Objective 3: Analyze the impact of business transactions on accounts) Thefollowing selected events were experienced by either Cardinal Industries, Inc., a corporation, orLarry Cardinal, the major stockholder. State whether each event (1) increased, (2) decreased, or (3)had no effect on the total assets of the business. Identify any specific asset affected.a. Sold land and received a note receivable of $43,000 (the land was carried on thecompany’s books at $43,000).b. Purchased equipment for the business for $81,000 cash.c. Cardinal used personal funds to purchase a pool table for his home.d. Purchased land for a building site for the business and signed a $98,000 promissory noteto the bank.e. Received $140,000 cash and issued stock to a stockholder.f. Earned $15,000 in revenue for services performed. The customer promises to payCardinal Industries in one month.g. The business paid Cardinal a cash dividend of $4,500.h. Paid $12,000 cash on accounts payable.i. Received $37,000…arrow_forward(Learning Objectives 3, 4: Evaluate business operations; construct and analyze anincome statement, a statement of retained earnings, and a balance sheet) The assets andliabilities of Full Moon Products, Inc., as of December 31, 2018, and revenues and expenses forthe year ended on that date are as follows:Equipment........................... $ 115,000Interest expense................... 10,000Interest payable ................... 2,800Accounts payable ................ 25,000Salary expense..................... 108,900Building............................... 405,000Cash.................................... 46,000Common stock.................... 26,100Land................................... $ 29,000Note payable...................... 99,200Property tax expense .......... 7,300Rent expense ...................... 41,000Accounts receivable............ 85,000Service revenue................... 451,600Supplies.............................. 6,200Utilities expense ................. 8,100Beginning…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Asset impairment explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=lWMDdtHF4ZU;License: Standard Youtube License