Accounting.

QUESTION 1 (30 points) On April 2, 2019, Orpheus Inc. acquired a new piece of filtering equipment. The cost of the equipment was 160,000 with a residual value of 20,000 at the end of its estimated useful lifetime of 4 years. Instructions: Prepare a complete depreciation schedule, beginning with calendar year 2019, under each of the methods listed below (with fractional years rounded to the nearest whole month): (1) (2) (3) Straight-line (10 points) 200 percent declining-balance (10 points) 150 percent declining-balance (10 points) QUESTION 2 (20 points) The stockholders' equity section of the balance sheet of Gilbert Corporation (with certain details omitted) appears below: Stockholders' equity: 6. preferred stock, $100 par, 50.000 shares authorized and issued, ?? shares issued $700,000 Common Stock, $25 par, 50,000 shares authorized, ?? shares issued 625,000 Additional paid-in capital: Preferred stock 35,000 Common stock 375.000 $1,735,000 100 Total paid-in capital Retained earnings Total stockholders' equity $2.475.000 Instructions: Answer the following questions based on the stockholders' equity section given above. (1) What is the total amount of legal capital? (5 points) (2) How many shares of common stock were issued? (5 points) (3) What is the total amount of dividends paid annually to the preferred stockholders? (5 points) (4) What is the average issue price of a share of common stock? (5 points) QUESTION 3 (25 points) Shown below is information relating to operations of Fazer Co. for the year ended 2019: 2,750,000 12,125,000 Continuing operations: Net sales Cost and expenses (including income taxes) Other data: Current-year loss generated by segment of the business discontinued in July (net of income taxes) 207,500 Gain on disposal of discontinued segment (net of income taxes) 137,500 Prior-period adjustment (decrease in prior years' income net of tax benefit) 45,000 Extraordinary loss (net of income tax benefit) 17,500 Cash dividends declared (1.50 per share) 150,000 Instructions: (1) Prepare a condensed income statement for 2019, including earnings per share figures. The company had 100,000 shares of a single class of capital stock outstanding throughout the year. (10 points) (2) Prepare a statement of retained earnings for the year ended December 31, 2019. As originally reported, retained earnings at December 31, 2018, amounted to 2,468,000. (10 points) (3) Compute the amount of cash dividend per share of common stock declared by the board of directors for 2019. Assume no dividends in arrears on the preferred stock. (5 points) QUESTION 4 (25 points) In order to prepare the statement of cash flows for Sophia Corporation for 2019, the accountant has compiled the following data regarding cash flows: Purchases of marketable securities Proceeds from sales of marketable securities Interest and dividends received Interest paid Taxes paid Dividends paid Proceeds from short-term borrowing Payments to settle short-term debts (principal repaid) Cash received from customers Cash paid to suppliers and employees Proceeds from issuing capital stock Purchases of plant assets Proceeds from sales of plant assets Cash and cash equivalents, beginning of year 48,000 75,000 19,500 18,000 43,500 27,000 31,500 36,000 681,000 531,000 118,500 201,000 58,500 73,500 Instructions: Based on the above information, prepare a complete statement of cash flows for Sophia Corporation, showing the computation of net cash flows from operating activities by the direct method. (25 points)