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GL1203 (Static) - Based on Problem 12-6A Golden Company LO P2, P3 Golden Corp's current year income statement, comparative balance sheets, and additional information follow.

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GL1203 (Static) - Based on Problem 12-6A Golden Company LO P2, P3 Golden Corp's current year income statement, comparative balance sheets, and additional information follow. For the year, it all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit (4) all debits to Accounts Payable reflect cash payments for inventory. (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $164,000 $107.000 Accounts receivable 83,000 71.000 Inventory 601,000 526080 Total current assets 848,000 700.000 Equipment 335,000 299,000 Accumulated depreciation-Equipment (158,000 (104,000) Total assets $ 1,025,000 $ 899,000 Liabilities and Equity Accounts payable 5 87.000 $ 71,080 Income taxes payable 28.000 25.000 Total current liabilities 115,000 96,080 Equity Common stock. $2 par value 592,000 568,000 Paid-in capital in excess of par value, common stock 196,000 168,000 122,000 75,000 Retained earnings $ 1,025,000 Total liabilities and equity $ 899,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54,000 Other expenses 494,000 Income before taxes Income taxes expense Net income $ 1,792,000 1,886,000 706,000 548,000 158,000 22,000 $ 136,000 Additional Information on Current Year Transactions a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $89,000 in cash dividends. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December 31, current year. Direct Method tab - Prepare the Statement of Cash flows for the year ended December 31, current year using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method. View transaction 25 po Journal entry worksheet 2 4 5 6 7 8 11 > Box Reconstruct the journal entry for cash receipts from customers, Incorporating the change in the related balance sheet accounts), if any. otec Enter debts before credits Account Tile Debit Credit Date December 31 Reference View general Journal Record entry Clear entry 2.5 points Journal entry worksheet 4 5 6 7 8 11 > Book Reconstruct the journal entry for cash payments for inventory, Incorporating the change in the related balance sheet account(s), if any. Print Note: Enter debits before credits Account Title Debit Credit Date December 31 References Record entry Clear entry View general Journal 2.5 Journal entry worksheet Doints 2 3 4 6 6 7 8 11 eBook Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date December 31 References Record entry Clear entry View general Journal ebook Reconstruct the journal entry for cash paid for other operating expenses, incorporating the change in the related balance sheet account(s), if any. Print Note: Enter debts before credits. Account The Debit Credit Data December 31 References Record entry Clear entry View general journal 2.5 points Journal entry worksheet 3 4 5 6 7 8 11 > Block Reconstruct the journal entry for Income taxes expense, incorporating the change in the related balance sheet account(s), if any. Print Note: Enter debits before credits Account Title Debit Credit Date December 31 References Record entry Clear entry View general journal 2.5 points Journal entry worksheet 7 8 11 Reconstruct the entry for the purchase of new equipment. eBook Print Note: Enter debits before credits Account Title Dobit Credit Date December 31 References Record entry Clear entry View general journal s Requirement General Ledger > View transaction list 2.5 points Journal entry worksheet 5 6 B 11 > Reconstruct the entry for the issuance of common stock. eBook Note: Enter debits before credits Account The Debit Credit Date December 31 References Record entry Clear entry View general Journal lieder View transactionist 2.5 Journal entry worksheet points 6 7 11 > Reconstruct the entry to record the payment of cash dividends. eBook Print Note: Enter debits before credits. Account Title Dobit Credit Date December 31 References Clear entry View general journal Record entry General Ledger > 2.5 points Journal entry worksheet 4 View transaction list 2.5 points Journal entry worksheet 4 5 6 7 a 9 10 11 Close Income Summary to Retained Earnings. eflook Prim Note: Enter debits before credits Account Title Dobit Credit Date December 31 References Record entry Clear entry View general journal Dates: December 31 tot December 31 2.5 points Unadjusted GOLDEN COMPANY Statement of Cash Flows (Direct Method) For Current Year Ended December 31 Cash flows from operating actives Cash received from customers $ 1.780,000 Decrease in inventory (1.145,000) Cash paid for operating expenses (494,000) Cash paid for income taxes (19,000) ellook Print $ 122.000 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment References (10,000) (36,000) Netcash used by investing activities Cash flows from financing activities Cash received from stock issuance Cash paid for dividends 00.000 (89000) $ Not cash used by financing activities Net increase in cash Cash balance at prior year-end Cash balance at current year-end (29,000) 67,000 107.000 164,000 $ 2,5 points eBook Prepare the operating activities section of the statement of cash flows using the Indirect method. Enter reductions to net cash provided by operating activities as necative values. Unadjusted Dates: December 31 - to: December 31 GOLDEN COMPANY Statement of Cash Flows indirect Method For Current Year Ended December 31 Cash flows from operating activities Net income $ 136,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement is not affecting cash Depreciation expense 5 54.000 Increase in accounts receivable (12,000) Changes in current operating assets and Babies Increase in inventory (75,000) Increase in accounts payable 1.600 3.000 Increase in income taxes payable Reference $ (28.4000 107,600 122.000 $ Net cath provided by operating activities using the direct method

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