1. Prepare journal entries for the selected transactions listed below. 2. Based on the account information...
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1. Prepare journal entries for the selected transactions listed below. 2. Based on the account information in the ledger, the selected transactions below, and the other financial statements, prepare theStatement of Cash Flows for ABC Company for the year ended June 30, 2014 3. Answer questions A-D. 1. PREPARE THE JOURNAL ENTRIES. Some of ABC Company's January transactions are listed below. They have been already been posted to the ledger. a. b. C. d. e. f. 9. Partial list of fiscal year ended June 30, 2014 transactions for ABC Company: a. Issued 5,000 shares of $1 par common stock for cash, $50,000 b. Sold investment for $35,000 of cash. c. Redeemed $55,000 bonds at face value. d. Declared $4,000 in dividends. e. Recorded depreciation on equipment, $18.500 1. Paid $3,500 in cash for dividends g. Purchased equipment for cash, $13,450 PARTIAL JOURNAL Debit Credit DO NOT POST JOURNAL ENTRIES PREPARED IN INSTRUCTION #1 (THEY ARE ALREADY INCLUDED BELOW 7/4/13 activity A bu 6/2014 7/113 6:3014 7/1153 62054 7/113 9- G:20 134 Cash 42480 101850 50000 35000 95030 Supplies Accounts Rec. # 115 5000 50400 9650 Before 3660 3050 2550 After Equipment 86920 13450 100370 0 # 100 62350 Invest. in XYZ Co #120 20000 158060 55000 3500 134509 292260 45750 # 116 4160 Accum. Deprec. #131 20000 b. # 130 9300 18500 2780062014 158060 292260 0 0 d LEDGER Accounts Pay. # 200 22800 3500 Bonds Payable Dividends Pay. # 210 55000 4900 3 Retained Earnings 21500 Cash Dividends 0 3600 6014 4000 4000 Common Stock # 320 700 78 4000 d 12000/14 #220 100000 45000 600/14 PIC in Ex of Par-CS #322 10000 7 5000 a 150000014 20000 72 45000 65000 600/14 # 400 1316073 # 410 2015 Service Revenue Rent Expense 0 Depreciation Exp. # 600 0 18500 18500 24000 24000 Salaries Expense 0 # 500 34000 34000 Supplies Expense 610 0 4160 4160 Gain on Sale 106500 106500 #603 07/ # 620 # 700 7/113 7/4/13 7/413 7/413 07/2013 15000 b 15000 Revenue: ABC Company Income Statement For the Year Ended June 30, 2014 Service revenue Operating expenses Depreciation Expense Rent Expense Supplies Expense Salaries Expense Total operating expenses mcome from operations Other revenue Sain on sale otal other revenue Het income Retained eamings, July 1, 2013 Het income Less: Dividends $ 18500 24000 ncrease in retained earnings Retained earnings, June 30, 2014 $ ABC Company Statement of Retained Earnings For the Year Ended June 30, 2014 4160 34000 $ 15000 40840 4000 FINANCIAL STATEMENTS S 106500 $ 80660 25840 15000 40840 13160 36840 50000 Current assets: Cash Accounts Receivable Supplies Plant Assets: Equipment Total current assets Investments Total Assets Less: Accumulated Depreciation Total plant assets Current liabilities: Accounts Payable Dividends Payable Total current liabilities Long-term liabilities: ABC Company Comparative Balance Sheet June 30, Bonds Payable Total abilities Paid in capital: Assets Retained Earnings Liabilities Stockholders' Equity Common Stack, $1 par, 50,000 authorized Paid in Capital in Excess of Par Total paid in capital Total stockholders' equity Total liabilities and stockholders' equity $ 2014 95030 $ 9650 2550 107230 100370 27800 72570 0 179800 $ 3600 $ 1200 4800 45000 49800 15000 65000 2013 42480 5000 3660 51140 86920 9300 77620 20000 148760 4900 700 5600 100000 105600 10000 20000 80000 30000 50000 13160 130000 43160 179800 $ 148760 Amount of InclDecl Type of Activity (ies) 2. COMPLETE THE STATEMENT OF CASH FLOWS. Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Cash flows from investing activities: Less: Changes in current operating assets and liabilities: Cash flows from financing activities: Less: ABC Company Statement of Cash Flows For the Year Ended June 30, 2014 Cash at beginning of period Cash at end of period 3. QUESTIONS A. If the corporation reported income and expenses using the cash basis (instead of accrual), what impact did operational transactions have on cash? Increase/Decrease B. What was the of largest specific source of cash inflow during the year? C. What was the largest specific source of cash outflow during the year? D. The ending cash balance on the Statement of Cash Flows should match the cash balance on which other financial statement? Amount $ 1. Prepare journal entries for the selected transactions listed below. 2. Based on the account information in the ledger, the selected transactions below, and the other financial statements, prepare theStatement of Cash Flows for ABC Company for the year ended June 30, 2014 3. Answer questions A-D. 1. PREPARE THE JOURNAL ENTRIES. Some of ABC Company's January transactions are listed below. They have been already been posted to the ledger. a. b. C. d. e. f. 9. Partial list of fiscal year ended June 30, 2014 transactions for ABC Company: a. Issued 5,000 shares of $1 par common stock for cash, $50,000 b. Sold investment for $35,000 of cash. c. Redeemed $55,000 bonds at face value. d. Declared $4,000 in dividends. e. Recorded depreciation on equipment, $18.500 1. Paid $3,500 in cash for dividends g. Purchased equipment for cash, $13,450 PARTIAL JOURNAL Debit Credit DO NOT POST JOURNAL ENTRIES PREPARED IN INSTRUCTION #1 (THEY ARE ALREADY INCLUDED BELOW 7/4/13 activity A bu 6/2014 7/113 6:3014 7/1153 62054 7/113 9- G:20 134 Cash 42480 101850 50000 35000 95030 Supplies Accounts Rec. # 115 5000 50400 9650 Before 3660 3050 2550 After Equipment 86920 13450 100370 0 # 100 62350 Invest. in XYZ Co #120 20000 158060 55000 3500 134509 292260 45750 # 116 4160 Accum. Deprec. #131 20000 b. # 130 9300 18500 2780062014 158060 292260 0 0 d LEDGER Accounts Pay. # 200 22800 3500 Bonds Payable Dividends Pay. # 210 55000 4900 3 Retained Earnings 21500 Cash Dividends 0 3600 6014 4000 4000 Common Stock # 320 700 78 4000 d 12000/14 #220 100000 45000 600/14 PIC in Ex of Par-CS #322 10000 7 5000 a 150000014 20000 72 45000 65000 600/14 # 400 1316073 # 410 2015 Service Revenue Rent Expense 0 Depreciation Exp. # 600 0 18500 18500 24000 24000 Salaries Expense 0 # 500 34000 34000 Supplies Expense 610 0 4160 4160 Gain on Sale 106500 106500 #603 07/ # 620 # 700 7/113 7/4/13 7/413 7/413 07/2013 15000 b 15000 Revenue: ABC Company Income Statement For the Year Ended June 30, 2014 Service revenue Operating expenses Depreciation Expense Rent Expense Supplies Expense Salaries Expense Total operating expenses mcome from operations Other revenue Sain on sale otal other revenue Het income Retained eamings, July 1, 2013 Het income Less: Dividends $ 18500 24000 ncrease in retained earnings Retained earnings, June 30, 2014 $ ABC Company Statement of Retained Earnings For the Year Ended June 30, 2014 4160 34000 $ 15000 40840 4000 FINANCIAL STATEMENTS S 106500 $ 80660 25840 15000 40840 13160 36840 50000 Current assets: Cash Accounts Receivable Supplies Plant Assets: Equipment Total current assets Investments Total Assets Less: Accumulated Depreciation Total plant assets Current liabilities: Accounts Payable Dividends Payable Total current liabilities Long-term liabilities: ABC Company Comparative Balance Sheet June 30, Bonds Payable Total abilities Paid in capital: Assets Retained Earnings Liabilities Stockholders' Equity Common Stack, $1 par, 50,000 authorized Paid in Capital in Excess of Par Total paid in capital Total stockholders' equity Total liabilities and stockholders' equity $ 2014 95030 $ 9650 2550 107230 100370 27800 72570 0 179800 $ 3600 $ 1200 4800 45000 49800 15000 65000 2013 42480 5000 3660 51140 86920 9300 77620 20000 148760 4900 700 5600 100000 105600 10000 20000 80000 30000 50000 13160 130000 43160 179800 $ 148760 Amount of InclDecl Type of Activity (ies) 2. COMPLETE THE STATEMENT OF CASH FLOWS. Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Cash flows from investing activities: Less: Changes in current operating assets and liabilities: Cash flows from financing activities: Less: ABC Company Statement of Cash Flows For the Year Ended June 30, 2014 Cash at beginning of period Cash at end of period 3. QUESTIONS A. If the corporation reported income and expenses using the cash basis (instead of accrual), what impact did operational transactions have on cash? Increase/Decrease B. What was the of largest specific source of cash inflow during the year? C. What was the largest specific source of cash outflow during the year? D. The ending cash balance on the Statement of Cash Flows should match the cash balance on which other financial statement? Amount $
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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