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I have two problems on balance sheet, statement of cash flows preparation, journal entries and amortization table. Problem 1. Balance sheet and statement of cash
I have two problems on balance sheet, statement of cash flows preparation, journal entries and amortization table.
Problem 1. Balance sheet and statement of cash flows preparation C. Selected financial statement information and additional data for Stanislaus Co. is presented below. Prepare a statement of cash flows for the year ending December 31, 2016 December 31 2015 Cash............................................................... Accounts receivable (net).............................. Inventory....................................................... Land............................................................... Equipment..................................................... TOTAL................................................ 2016 $42,000 64,000 168,000 68,800 504,000 $846,800 $55,000 144,200 206,600 41,000 769,600 $1,216,400 Accumulated depreciation............................ $64,000 Accounts payable.......................................... 50,400 Notes payable - short-term........................... 67,200 Notes payable - long-term............................. 168,000 Common stock.............................................. 430,000 Retained earnings.......................................... 67,200 TOTAL................................................$846,800 $95,600 86,000 20,400 331,400 467,200 215,800 $1,216,400 Additional data for 2014: 1. Net income is shown on income statement below. 2. Depreciation was $31,600. 3. Land was sold at its original cost. 4. Dividends were paid. 5. Equipment was purchased. 6. Company issued long-term note payable. 7. Company repaid short-term notes. 8. Common stock was issued. Income Statement For the year ended December 31, 2016 Sales revenue................. $1,000,000 Cost of goods sold......... 380,000 Gross profit 620,000 Selling and administrative expenses..... 260,000 Pre-tax operating income 360,000 Income taxes 160,000 Net income.........................................................$200,000 a. Prepare a balance sheet in proper form. b. Prepare the statement of cash flow using the indirect method Problem 2. B. On January 1, 2016, Domino Incorporated provides services to Jon Jon Associates in return for a $100,000, 2 year, zero interest note maturing on December 31, 2017 The normal borrowing rate for Jon Jon is 8%. Required: 1. Prepare the journal entry to record the services on Domino's books. 2. Prepare an amortization table using the effective interest method. 3. Prepare the journal entries to record the interest revenue in 2016 and 2017 and receipt of the final payment on December 31, 2017Step by Step Solution
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