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Delphinium Corp. Trial Balance at December 3 1 , 2 0 XX is presented below. All 2 0 XX transactions have been recorded except for
Delphinium Corp. Trial Balance at December XX is presented below. All XX transactions have been recorded except for the items described on the next page. Debit Credit $ $ $ $ Cash Accounts Receivable Inventory Debt Investments Land Buildings Equipment Allowance for Doubtful Accounts Accumulated DepreciationBuildings Accumulated DepreciationEquipment Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock $ par Paid in Capital in Excess of ParCommon Stock Preferred Stock $ par Paid in Capital in Excess of ParPreferred Stock Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Gain on sale of land Gain on sale of debt investments Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Total CONTINUED ON NEXT PAGE Unrecorded transactions: Round all calculations if necessary to decimals to the nearest dollar, do not show cents On January XX Delphinium Corp. issued shares of $ par, preferred stock for $ On January XX Delphinium Corp. also issued shares of common stock for $ On January XX Delphinium Corp. issued $year bond when the market rate was Hint: Cash received will be the present value of the bond Interest is to be paid annually on each January beginning one year from date of issue. Delphinium Corp. reacquired shares of its common stock on January XX for $ per share. On December XX Delphinium Corp. declared the annual preferred dividend plus a $ per share dividend on the outstanding common stock, all payable in cash on January of next year. Bought Debt Investments worth $ for cash. Debt investments are expected to be held for longer then a year. On December XX Delphinium Corp. estimates that the total amount of accounts receivable that is uncollectible at yearend is $ The building is being depreciated using the straight line method over years. The salvage value is $ The equipment is being depreciated using the straight line method over years. The salvage value is $ Sold the Land for $ cash. The unearned rent for the current month was collected on December XX The original amount received was months' rent in advance December of this year through May of next year The first cash interest payment on the bonds is due January of next year. The annual interest on the bonds for XX has not yet been recorded. Use the effective interest method. The Delphinium Corp. sold half of the Debt Investments for $ cash The Delphinium Corp. must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of The taxes will not be paid until March of next year. CONTINUED ON NEXT PAGE Instructions: a Prepare journal entries for the transactions listed above. b Prepare an updated December XX trial balance. c Prepare a multiplestep income statement for the year ending December XX d Prepare a retained earnings statement for the year ending December XX e Prepare a classified balance sheet as of December XX f Prepare a Statement of Cash Flows as of December XX g and h Calculate and analyze the following ratios, clearly presenting your work and answers: Working Capital Current Ratio Debt to Assets Ratio EPS Times Interest Earned Payout Ratio Free Cash Flow Check figures round all numbers to the whole dollar Updated Trial Balance Total: Net Income: Total Assets: Net Cash from Operating Activities:
Delphinium Corp. Trial Balance at December XX is presented below.
All XX transactions have been recorded except for the items described on the next page.
Debit Credit
$
$
$
$
Cash
Accounts Receivable
Inventory
Debt Investments
Land
Buildings
Equipment
Allowance for Doubtful Accounts
Accumulated DepreciationBuildings
Accumulated DepreciationEquipment
Accounts Payable
Interest Payable
Unearned Rent Revenue
Dividends Payable
Income Tax Payable
Bonds Payable
Discount on Bonds Payable
Common Stock $ par
Paid in Capital in Excess of ParCommon Stock
Preferred Stock $ par
Paid in Capital in Excess of ParPreferred Stock
Retained Earnings
Treasury Stock
Cash Dividends
Sales Revenue
Rent Revenue
Gain on sale of land
Gain on sale of debt investments
Bad Debt Expense
Interest Expense
Cost of Goods Sold
Depreciation Expense
Other Operating Expenses
Salaries and Wages Expense
Income Tax Expense
Total
CONTINUED ON NEXT PAGE
Unrecorded transactions:
Round all calculations if necessary to decimals to the nearest dollar, do not show cents
On January XX Delphinium Corp. issued shares of $ par, preferred stock for $
On January XX Delphinium Corp. also issued shares of common stock for $
On January XX Delphinium Corp. issued $year bond when the market rate was
Hint: Cash received will be the present value of the bond
Interest is to be paid annually on each January beginning one year from date of issue.
Delphinium Corp. reacquired shares of its common stock on January XX for $ per share.
On December XX Delphinium Corp. declared the annual preferred dividend plus a $ per share dividend on the outstanding common stock, all payable in cash on January of next year.
Bought Debt Investments worth $ for cash. Debt investments are expected to be held for longer then a year.
On December XX Delphinium Corp. estimates that the total amount of accounts receivable that is uncollectible at yearend is $
The building is being depreciated using the straight line method over years. The salvage value is $
The equipment is being depreciated using the straight line method over years. The salvage value is $
Sold the Land for $ cash.
The unearned rent for the current month was collected on December XX The original amount received was months' rent in advance December of this year through May of next year
The first cash interest payment on the bonds is due January of next year. The annual interest on the bonds for XX has not yet been recorded. Use the effective interest method.
The Delphinium Corp. sold half of the Debt Investments for $ cash
The Delphinium Corp. must make an adjusting entry to accrue income tax expense on
Income Before Income Tax at a rate of The taxes will not be paid until March of next year.
CONTINUED ON NEXT PAGE
Instructions:
a Prepare journal entries for the transactions listed above.
b Prepare an updated December XX trial balance.
c Prepare a multiplestep income statement for the year ending December XX
d Prepare a retained earnings statement for the year ending December XX
e Prepare a classified balance sheet as of December XX
f Prepare a Statement of Cash Flows as of December XX
g and h Calculate and analyze the following ratios, clearly presenting your work and answers:
Working Capital
Current Ratio Debt to Assets Ratio
EPS Times Interest Earned
Payout Ratio Free Cash Flow
Check figures round all numbers to the whole dollar
Updated Trial Balance Total:
Net Income:
Total Assets:
Net Cash from Operating Activities:
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