ACC 557 Week 9 Chapter 13 (E13-3,E13-4,E13-6,P13-3A)
ACC 557 Week 9 Chapter 13 (E13-3,E13-4,E13-6,P13-3A) fin571
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Date Created: 11/11/15
EXERCISE 133 1 a Cash Loss on Disposal of Plant Assets Land 10000 2000 b The cash receipt 10000 is reported in the investing section The loss 2000 is added to net income in the operating section a Cash 22000 Common Stock b The cash receipt 22000 is reported in the financing section a Depreciation Expense Accumulated Depreciation Buildings 14000 b Depreciation expense 14000 is added to net income in the operating section a Salaries and Wages Expense 7000 Cash 7 000 b Salaries and Wages expense is not reported separately on the statement of cash flows It is part of the computation of net income in the income statement and is included in the net income amount on the statement of cash flows a Equipment Common Stock 9000 1000 Paidin Capital in Excess of Par Common Stock 8000 b The issuance of common stock for equipment 9000 is reported as a noncash financing and investing activity at the bottom of the statement of cash ows a Cash Accumulated Depreciation Equipment Equipment 3200 8000 10000 Gain on Disposal of plant Assets 1200 b The cash receipt 3200 is reported in the investing section The gain 1200 is deducted from net income in the operating section quest2096499ent quest2096499 asnmt967523 takequestion a 1 Exercise 133 1quot39II39IYOUI answer is COI I39CCt Tim Latimer Corporation had the following transactions Sold land cost 12000 for 10000 Issued common stock at par value for 22000 Recorded depreciation on buildings for 14000 Paid salaries of 7000 Issued 1000 shares of 1 par value common stock for equipment worth 9000 Sold equipment cost 10000 accumulated depreciation 8000 for 3200 9959 For each transaction above prepare the journal entry Credit account titles are automatically indented w amount is entered Do not indent manually No Account Titles and Explanation Debit Credit 1 Cash 10000 m l 2000 IT 12000 2 7W 22000 m 22000 3 lDeprTationE 14000 W1 I 14000 4 m l 7000 l Gas h 7000 5 Equipment I 9000 V I mrnon Stool I l I 1000 W Paidin Capital I I 8000 6 Cash I 3200 I I Accumulatedl I 8000 I Equipment I I I 10000 W Gain on Dispo I I I 1200 Click here if you would like to Show Work for this question 5th LIE i Aemuniszs E hwmmswer think to T mt Question Attempts 1 of 3 used EXERCISE 134 BRACEWELL COMPANY Partial Statement of Cash Flows For the Year Ended December 31 2014 Cash ows from operating activities Net income 195000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense 40000 Gain on disposal of plant assets 5000 Increase in accounts payable 17000 Increase in accounts receivable 15000 Decrease in prepaid expenses 4000 41 000 Net cash provided by operating activities 236000 quest2096501enti quest2096501 asnmt967523 takequestion a Exercise 134 iWYOUI answer 18 COI I CCt Bracewell Company reported net income of 195000 for 2014 Bracewell also reported depreciation CXpt 40000 and a gain of 5000 on disposal of plant assets The comparative balance sheet shows an increas accounts receivable of 15000 for the year a 17000 increase in accounts payable and a 4000 decreas prepaid expenses Prepare the operating activities section of the statement of cash ows for 2014 Use the indirect method amounts that decrease cash ow with either a sign e g 15000 or in parenthesis eg 15 000 BRACEWELL COMPANY Click here Partial Statement of Cash Flows would like For the Year Ended December 31 2014 ShOW W01 this questi Cash Flow 3 from Operating Activities 1 EAT132643086 Net Income EAT132643086 l 195000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities 4 EAT132643086 l Depreciation Expense EAT132643086 40000 Gain on Disposal oi Plant Assets 399 EAT132643086E 5000 Increase in Accounts Payable 1r EAT132643086 17000 Increase in Accounts Receivable l Decrease in Prepaid Expenses EAT132643086 4000 I 41000 Net Cash Provided by Operating Activities 1 EAT132643086E 236000 l EAT132643086E 15000 Question Attempts 3 of 3 used Exercise 136 iWYOIIII39 answer is COI39I39CCt The three accounts shown below appear in the general ledger of Chaudry Corp during 2014 Jan 1 Balance 160000 July 31 Purchase of equipment 70000 230000 Sept 2 Cost of equipment constructed 53000 283000 Nov 10 Cost of equipment sold 49000 234000 Accumulated Depreciation Equipment Jan 1 Balance 71000 Nov 10 Accumulated depreciation on equipment sold 28000 43000 Dec 31 Depreciation for year 23000 66000 Retained Earnings Jan 1 Balance 105000 Aug 23 Dividends cash 17000 88000 Dec 31 Net income 67000 155000 From the postings in the accounts indicate how the information is reported on a statement of cash ows using the indirect method The loss on disposal of plant assets was 5000 Hint Cost of equipment constructed is reported in the investing activities section as a decrease in cash of 53000 Show amounts that decrease cash ow with either a sign e g 15 000 or in parenthesis eg 15000 CHAUDRY CORP Partial Statement of Cash Flows For the Year Ended December 31 2014 ll Cash Flows from Operating Activities EAT132643171C ll Net Income EAT132643171C T Adjustments to reconcile net income to ll Net Cash Provided by Operating Activities EAT132643171C EAT1326431 71 C M 23000 Loss on Disposal of Plant Assets EAT132643171C 5000 Depreciation Expense 28000 Net Cash Provided by Operating Activities 95000 EAT132643171C ll Cash Flows from Investing Activities EAT132643171C Sale of Plant Assets EAT132643171C quotW H Construction of Equipment EAT132643171C I 53000 ll Purchase of Equipment EAT132643171C 70000 Net Cash Used by Investing Activities m ll Cash Flows from Financing Activities EAT132643171C ll Payment of Cash Dividends EAT132643171C 17000 PROBLEM 133A TOBY ZED COMPANY Partial Statement of Cash Flows For the Year Ended November 30 2014 Cash ows from operating activities Net income 1450000 Adjustments to reconcile net income to net cash provided by operating activities activities Depreciation expense Decrease in inventory Decrease in accrued expenses payable Increase in prepaid expenses Increase in accounts receivable Decrease in accounts payable 235000 Net cash provided by operating activities 85000 500000 105000 175000 200000 1 340000 l quest2096514ent quest2096514 l asnmt967523 l I takequestion Problem 13 3A iWYOUI answer 18 COI I39CCt The income statement of Toby Zed Company is presented here Sales revenue 7500000 Cost of goods sold Beginning inventory 1900000 Purchases 4400000 Goods available for sale 6300000 Ending inventory 1400000 Total cost of goods sold 4900000 Gross profit 2600000 Operating expenses 1150000 Net income 1450000 Additional information Accounts receivable increased 200000 during the year and inventory decreased 500000 Prepaid expenses increased 175000 during the year Accounts payable to suppliers of merchandise decreased 340000 during the year Accrued expenses payable decreased 105000 during the year Operating expenses include depreciation expense of 85000 9155995 Prepare the operating activities section of the statement of cash ows for the year ended November 30 2C Toby Zed Company using the indirect method Show amounts that decrease cash ow with either a st 15 000 or in parenthesis e g 15000 TOBY ZED COMPANY Partial Statement of Cash Flows For the Year Ended November 30 2014 H Cash Flow s from Operating Activities 139 EAT1326436529 H Net Income EAT1326436529 H 1450000 Adjustments to reconcile net income to HH Net Cash Provided by Operating Activities 1139 EAT1326436529 H Depreciation Expense EAT132643652E 85000 H Decrease in Inventory EAT1326436529 500000 H Decrease in Accrued Expenses Payable EAT1326436529 H 105000 HH Increase in Prepaid Expenses EAT1326436529 H 175000 HH Increase in Accounts Receivable EAT1326436529 H 200000 H Decrease in Accounts Payable EAT1326436529 H 340000 H 235000 H Net Cash Provided by Operating Activities EAT132643652 1215000 Click here if you would like to Show Work for this question iLIEI39iIE m Text ilL nlEz tin 39ial39iuzl aiaf Question Attempts 1 of 3 used
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