Hello, how would i be able to complete income statment of cash flow excerise 5 and 6. PLEASE HELP

EXAM 2 - Part 2: TAKE HOME Version B (CH 15 & 17) Principles of Accounting II BTA112.0020 Prof. E. Flores STUDENT NAME: ________________________________ NOTE: THIS EXAM MUST BE COMPLETED ON YOUR OWN!!! EXERCISE 3 (10 points) Presented below are three independent situations: (a) Rolex Corporation purchased $350,000 of its bonds on June 30, 2017, at 104 and immediately retired them. The carrying value of the bonds on the retirement date was $371,000. The bonds pay annual interest and the interest payment due on June 30, 2017, has been made and recorded. (b) Corpuz, Inc. purchased $300,000 of its bonds at 98 on June 30, 2017, and immediately retired them. The carrying value of the bonds on the retirement date was $275,000. The bonds pay annual interest and the interest payment due on June 30, 2017, has been made and recorded. (c) Niko Company has $75,000, 15%, 15-year convertible bonds outstanding. These bonds were sold at face value and pay annual interest on December 31 of each year. The bonds are convertible into 30 shares of Ritz $9 par value common stock for each $1,000 par value bond. On December 31, 2017, after the bond interest has been paid, $20,000 par value of bonds was converted. The market value of Valley's common stock was $38 per share on December 31, 2017. Instructions: For each independent situation above, prepare the appropriate journal entry for the redemption or conversion of the bonds. Note: Write clearly and use complete account names [Do not abbreviate]. J1 General Journal Date Account Titles and Explanation Ref. Debit Credit TAKE HOME EXAM p. 1 EXERCISE 4 (10 points) Best Inc. issued $600,000, 12%, 15-year bonds on January 1, 2017, at 95. Interest is payable annually each January 1. The company uses the straight-line method of amortization for bond premium or discount. Instructions: Prepare the journal entries to record: (a) The issuance of the bonds. (b) The accrual of interest and the premium or discount amortization on December 31, 2017. (c) The payment of interest on January 1, 2018. (d) The redemption of bonds at maturity date, assuming interest for the last interest period has been paid and recorded. Note: Write clearly & use complete account names [Do not abbreviate]. J1 General Journal Date Account Titles and Explanation Ref. Debit Credit EXERCISE 5 (10 points) Palmer Company reported net income of $100,000 for the year 2017. Depreciation recorded on buildings and equipment amounted to $35,000 for the year and the company reported a gain on sale of plant assets of $85,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable Inventories Prepaid expenses Accounts payable Income taxes payable End of Year $20,000 54,000 55,000 3,500 18,000 5,200 Beginning of Year $15,000 32,000 65,000 6,000 48,000 1,200 Instructions: Prepare the cash flows from operating activities section of the statement of cash flows for 2017. Use the indirect method. Note: Write clearly and use proper labels [do not abbreviate]. To gain full credit, you must write down the appropriate levels for each shown amount. TAKE HOME EXAM p. 2 EXERCISE 6 (20 points) A comparative balance sheet for Carson Company appears below: CARSON COMPANY Comparative Balance Sheet Dec. 31, 2017 Assets Cash $ 18,000 Accounts receivable 25,000 Inventories 45,000 Equipment 70,000 Accumulated depreciationequipment (27,000) Total assets $131,000 Dec. 31, 2016 $33,000 14,000 25,000 78,000 (24,000) $126,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 31,000 24,000 20,000 25,000 31,000 $131,000 $ 43,000 20,000 10,000 25,000 28,000 $126,000 Additional information: 1. 3. 4. 5. 6. Net income for the year ending December 31, 2017 was $28,000. Cash dividends of $25,000 were declared and paid during 2017. Total depreciation expense for the year was $6,000. During the year, equipment was sold for $12,000 cash. The equipment cost of $15,000 originally and had accumulated depreciation of $3,000 at the time of sale. Additional equipment was purchased for $7,000 cash. TAKE HOME EXAM p. 3 Instructions: Prepare a statement of cash flows for the year ended December 31, 2017. Note: Write clearly and use proper labels [do not abbreviate]. To gain full credit, you must write down the appropriate levels for each shown amount. TAKE HOME EXAM p. 4