INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
3rd Edition
ISBN: 9780137391707
Author: GORDON
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 6.5E
Prepare
Account | Debit | Credit |
Cash | $ 645,235 | |
Notes payable, due in 5 years | $ 190,900 | |
857,735 | ||
Obligations under capital leases (noncurrent) | 575,000 | |
Obligations under pension plans | 301,250 | |
35,500 | ||
Accumulated other comprehensive loss | 356,700 | |
Current portion of long-term debt | 356,800 | |
Property, plant, and equipment - net | 2,745,600 | |
Investments in affiliate companies (noncurrent) | 567,500 | |
Accounts receivable | 450,000 | |
Bonds payable, due in 10 years | 1,890,750 | |
Investments at fair value (trading) | 235,000 | |
Accounts payable | 500,000 | |
Additional paid-in capital | 710,300 | |
Dividends payable | 55,000 | |
Equipment under capital lease | 1,511,750 | |
Intangible assets – net | 205,700 | |
Merchandise inventory | 665.750 | |
Income taxes payable | 40,000 | |
Common stock, $1 par value | 1,870,000 | |
Totals | $7,383,235 | $7,383,235 |
Required
- a. Prepare the current-year classified balance sheet using the report format.
- b. Prepare the current-year classified balance sheet using the account format.
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Retirement of Debt
M Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows:
Paid cash of $16,400 to retire bonds payable with a face value of $18,000 and a book value of $16,800.
Paid cash of $46,000 to retire bonds payable with a face value of $43,000 and a book value of $45,000.
Required:
Record, in journal entry form, the entries that M would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not require an entry, leave it blank.
DESCRIPTION
DOC. NO.
POST. REF.
DEBIT
CREDIT
(1)
fill in the blank 2
fill in the blank 3
fill in the blank 5
fill in the blank 6
Cash Flows from Financing Activities:
fill in the blank 8
fill in the blank 9
Net Cash Flow from Operating Activities:…
Category.
Prior Year Current Year
Accounts payable
???
???
Accounts receivable
320,715
397,400
Accruals
40,500
33,750
Additional paid in capital
500,000
541,650
Cash
17,500
47,500
Common Stock
94,000
105,000
COGS
328,500
429,735.00
Current portion long-term debt
33,750
35,000
Depreciation expense
54,000
55,152.00
Interest expense
40,500
42,662.00
Inventories
279,000
288,000
Long-term debt
339,349.00 400,985.00
Net fixed assets
946,535
999,000
Notes payable
148,500
162,000
Operating expenses (excl. depr.) 126,000
161,641.00
Retained earnings
306,000
342,000
Sales
639,000
848,846.00
Тахes
24,750
47,931.00
The Cidros reported the following information on long-term debt:
Current year
Previous year
Total long-term debts
$14,578 millions
$18,564 millions
Minus the current portion
(1,290) millions
(1,540) millions
Long-term debts
13,288 millions
17,024 millions
Determine how much total current liabilities changed between the previous year and the current year as a result of the long-term debt portion. Explain your answer.Indicates the balance of the debt the following year if The Cidros does not acquire another long-term debt in the next few years.
Chapter 6 Solutions
INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
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