Instructions: Create a single Excel document with one worksheet/tab for each problem. Each problem is worth 20 points. Problem 1 The following accounts appeared on the trial balance of Gaudette Company at December 31, 2008. All accounts have normal balances. Notes Payable $64,000 Accounts Receivable $172,800 Accumulated Depreciation - Bldg. $261,000 Prepaid Expenses $18,750 Supplies on Hand $12,600 Customers' Deposits $1,250 Accrued Salaries and Wages $11,400 Common Stock*** $375,000 *Investments in Debt Securities $93,800 Cash $56,750 Inventories (average cost) $526,750 Bonds Payable Due 1/1/12 $400,000 Land at Cost $155,000 Allowance for Doubtful Accts. $2,600 Trading Securities**** $24,400 Franchise $64,300 Accrued Interest on Notes Payable $650 Notes Receivable $46,000 Buildings at Cost $642,000 Income Taxes Payable $52,000 Accounts Payable $136,650 Preferred Stock** $250,000 Additional Paid-in Capital $54,600 Appropriated Retained Earnings $98,000 Unappropriated Retained Earnings ??? *The company intends to hold the securities until maturity, which is in ten years. **8% cumulative; $10 par value; 25,000 shares authorized and outstanding. ***$1 par value; 400,000 shares authorized; 375,000 shares issued and outstanding. ****The company intends to sell the trading securities in the next year. Directions (20 Points): Prepare a classified balance sheet for Gaudette Company on December 31, 2008 on a separate Excel spreadsheet as directed on the Problem Set 1 directions. Problem 2 The following balance sheet was prepared by the bookkeeper for Perry Company as of December 31, 2008. Perry Company Balance Sheet as of December 31, 2008 Cash $ 80,000 Accounts payable $ 75,000 Accounts receivable (net) 52,200 Long-term liabilities 100,000 Inventories 57,000 Stockholders' equity 218,500 Investments 76,300 Equipment (net) 96,000 Patents 32,000 $393,500 $393,500 The following additional information is provided: 1. Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted. 2. The net accounts receivable balance includes: (a) accounts receivable?debit balances $60,000; (b) accounts receivable?credit balances $4,000; (c) allowance for doubtful accounts $3,800. 3. Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods. 4. Investments include investments in common stock, trading $19,000 and available-for-sale $48,300, and franchises $9,000. 5. Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000. Directions (20 points) Prepare a balance sheet in good form (stockholders' equity details can be omitted.) Problem 3 Presented below is financial information of the Lilley Corporation for 2008 Beginning Retained Earnings, 1/1/08 $950,000 Gain on the Sale of Investments (normal recurring) $110,000 Sales for the Year $30,000,000 Loss Due to Flood Damage (unusual & infrequent) $125,000* Cost of Goods Sold $21,000,000 Loss on Disposal of Retail Division $450,000* Interest Revenue $70,000 Loss on Operations of Retail Division $460,000* Selling and Administrative Expenses 5,500,000 Dividends Declared on Common Stock $230,000 Write-Off of Goodwill $520,000 Dividends Declared on Preferred Stock $80,000 Federal Income Tax on Operations for 2008 1,600,000 *net of tax Lilley Corporation decided to discontinue its retail operations and to retain its manufacturing operations. On August 15, Lilley sold the retail operations to Schoen Company. During 2008, there were 250,000 shares of common stock outstanding all year. Directions (20 Points): Prepare a multiple-step income statement for the year 2008 on a separate Excel spreadsheet as directed in the Problem Set 1 directions. Problem 4 December 31 2009 2008 Cash $90,000 $27,000 Accounts Receivable $92,000 $80,000 Allowance for Doubtful Accounts ($4,500) ($3,100) Inventory $155,000 $175,000 Prepaid Expenses $7,500 $6,800 Land $90,000 $60,000 Buildings $287,000 $244,000 Accumulated Depreciation ($32,000) ($13,000) Patents $20,000 $35,000 $705,000 $611,700 Accounts Payable $90,000 $84,000 Accrued Liabilities $54,000 $63,000 Bonds Payable $125,000 $60,000 Common Stock $100,000 $100,000 Retained Earnings - Appropriated $80,000 $10,000 Retained Earnings - Unappropriated $271,000 $302,700 Treasury Stock, At Cost ($15,000) ($8,000) $705,000 $611,700 For 2009 Year Net Income $58,300 Depreciation Expense $19,000 Amortization of Patents $5,000 Cash Dividends Declared and Paid $20,000 Gain Or Loss On Sale of Patents None Directions (20 Points): Given the above information, prepare a statement of cash flows for Doug Corporation for the year 2009 on a separate Excel spreadsheet as directed on the Problem Set 1 directions. Problem 5 The net changes in the balance sheet accounts of Lenon, Inc. for the year 2008 are shown below: Account Debit Credit Cash $ 125,600 Accounts receivable $ 64,000 Allowance for doubtful accounts 14,000 Inventory 217,200 Prepaid expenses 20,000 Long-term investments 144,000 Land 300,000 Buildings 600,000 Machinery 100,000 Office equipment 28,000 Accumulated depreciation: Buildings 24,000 Machinery 20,000 Office equipment 12,000 Accounts payable 183,200 Accrued liabilities 72,000 Dividends payable 128,000 Premium on bonds 32,000 Bonds payable 800,000 Preferred stock ($50 par) 60,000 Common stock ($10 par) 156,000 Additional paid-in capital?common 223,200 Retained earnings 87,200 $1,705,200 $1,705,200 Additional information: 1. Net income for the year was $140,000. 2. Cash dividends of $128,000 were declared December 15, 2008, payable January 15, 2009. A 5% stock dividend was issued March 31, 2008, when the market value was $22 per share. 3. The long-term investments were sold for $140,000. 4. A building and land which cost $480,000 and had a book value of $300,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000. 5. The following entry was made to record an exchange of an old machine for a new one: Machinery 160,000 Accumulated Depreciation?Machinery 40,000 Machinery 60,000 Cash 140,000 6. A fully depreciated copier machine which cost $28,000 was written off. 7. Preferred stock of $60,000 par value was redeemed for $80,000. 8. The company sold 12,000 shares of its common stock ($10 par) on June 15, 2008 for $25 a share. There were 87,600 shares outstanding on December 31, 2008. 9. Bonds were sold at 104 on December 31, 2008. Directions (20 points) Prepare a statement of cash flows. Ignore tax effects. Ms. Smalling, I apologize for the tardiness of the assignment, especially given its simple nature. I live on Central Florida (Kissimmee), and we've been slammed with bad weather throughout the last 2 weeks. I've had to have BrightHouse, our internet carrier come to our home, 3 times now. They also had to replace some equipment that powers the whole subdivision I'm in. The only reason I was able to the DB board assignment in time was because I did it at work. I'll try to check in more on class while at work because it seems like I'll have to do more of it here than at home due to these internet and corresponding weather issues. I know you will still have to take points off, but I didn't want you to think I was being disrespectful of your deadline. Also, since it is late, I chose more than 5 topics, as I'm sure other students may have submitted on time. Income statement Balance sheet Cash flow statement Inventory\\ Revenue Income Taxes Intangible Assets