MBA Managerial Accounting Handout Problem for Chapter 2A Fall 2021 Due on September 9, 2021 PART A-Lynch Company had the following amounts for their balance sheet the past two years 12/31/2019 12/31/2020 Building EXA 300,000 300,000 Equipment FXA 140.000 162,000 Paid in Capital in Excess of Par EN 140,000 150,000 Common Stock ER 90,000 95,000 Notes Payable (10 year) LB 90.000 80,000 Accumulated Depreciation - Building Exp 80,000 110,000 Merchandise Inventory CA 42,000 53,000 Accumulated Depreciation - Equipment CXA 25.000 42,000 Accounts Payable LB 20,000 16,000 Accounts Receivable CA- 19.000 37,000 6,000 9.200 Interest Payable CB 2.400 1,200 Supplies CA- 1,400 2.000 Retained Earnings EQ Plug Cash CA- Plug Prepare a comparative balance sheet for Lynch with proper headings and categories PART B - Lynch declared and paid $9.500 of dividends during 2020. How much net income did Lynch earn during 2020, assuming no "weird" items. Please show and label your work You may complete this assignment by the beginning of class next week: 1. By hand on a piece of paper and then submit the paper in class next week or 2. By entering your answers into an Excel spreadsheet and then a. print out your spreadsheet and submit the paper in class next week b. upload the spreadsheet into the Drop Box in D2L for Homework Problem 1. 3. I will NOT accept Word documents, PDFs, or pictures uploaded into D2L for any of our homework assignments. If you want to use Word to complete your assignment, then you must print out the assignment and submit the paper in class. This is the procedure for all 24 homework assignments this semester. MBA Managerial Accounting Handout Problem for Chapter 28 Fall 2021 Due on September 9, 2021 Case A Simple Company had $160,000 income from continuing operations before tax and also reported a $20,000 gain from discontinued operations. Simple Company is in a 21% corporate tax rate Simple began the year with 50,000 shares of common stock outstanding and then sold 5,000 new shares on April 1. Simple has no preferred stock. Simple Company declared $6,000 of cash dividends at various times during the year and paid $4.500 of those dividends prior to the end of the year Prepare the income statement for Simple Company beginning with the line called "Income Before Tax." Include the basic earnings per share presentation Case B Complex Company had $400,000 income from continuing operations before tax and also reported a $22,000 cumulative effect of change in accounting principle (with a credit balance) and a $70,000 loss from discontinued operations. Assume a 30% corporate tax rate on all items, Complex Company ENDED the year with 120,000 shares of common stock outstanding which includes the sale of 9.000 new shares on November 1. Complex also has 3,000 shares of Preferred Stock but did not sell any preferred stock during the year. Complex Company declared and paid $40,000 of cash dividends at various times during the year and paid $6,000 of those dividends to the preferred stockholders and $34,000 to the Common Stockholders. 1. Prepare the income statement for Complex Company beginning with the line called "Income Before Tax." Include the basic earnings per share presentation 2. Prepare the retained camnings statement for Complex Company assuming Complex had $618,000 in Retained Earnings on January 1 of this year. Case C Explain how the following transactions will change the following balance sheet categories (ignore any changes in income taxes caused by these transactions): Assets Liabilities Stock Equity a. Paid cash for a patent on a new product. b. Collected interest on an investment c. Purchased merchandise on account (assuming a perpetual inventory system) MBA Managerial Accounting Handout Problem for Chapter 2A Fall 2021 Due on September 9, 2021 PART A-Lynch Company had the following amounts for their balance sheet the past two years 12/31/2019 12/31/2020 Building EXA 300,000 300,000 Equipment FXA 140.000 162,000 Paid in Capital in Excess of Par EN 140,000 150,000 Common Stock ER 90,000 95,000 Notes Payable (10 year) LB 90.000 80,000 Accumulated Depreciation - Building Exp 80,000 110,000 Merchandise Inventory CA 42,000 53,000 Accumulated Depreciation - Equipment CXA 25.000 42,000 Accounts Payable LB 20,000 16,000 Accounts Receivable CA- 19.000 37,000 6,000 9.200 Interest Payable CB 2.400 1,200 Supplies CA- 1,400 2.000 Retained Earnings EQ Plug Cash CA- Plug Prepare a comparative balance sheet for Lynch with proper headings and categories PART B - Lynch declared and paid $9.500 of dividends during 2020. How much net income did Lynch earn during 2020, assuming no "weird" items. Please show and label your work You may complete this assignment by the beginning of class next week: 1. By hand on a piece of paper and then submit the paper in class next week or 2. By entering your answers into an Excel spreadsheet and then a. print out your spreadsheet and submit the paper in class next week b. upload the spreadsheet into the Drop Box in D2L for Homework Problem 1. 3. I will NOT accept Word documents, PDFs, or pictures uploaded into D2L for any of our homework assignments. If you want to use Word to complete your assignment, then you must print out the assignment and submit the paper in class. This is the procedure for all 24 homework assignments this semester. MBA Managerial Accounting Handout Problem for Chapter 28 Fall 2021 Due on September 9, 2021 Case A Simple Company had $160,000 income from continuing operations before tax and also reported a $20,000 gain from discontinued operations. Simple Company is in a 21% corporate tax rate Simple began the year with 50,000 shares of common stock outstanding and then sold 5,000 new shares on April 1. Simple has no preferred stock. Simple Company declared $6,000 of cash dividends at various times during the year and paid $4.500 of those dividends prior to the end of the year Prepare the income statement for Simple Company beginning with the line called "Income Before Tax." Include the basic earnings per share presentation Case B Complex Company had $400,000 income from continuing operations before tax and also reported a $22,000 cumulative effect of change in accounting principle (with a credit balance) and a $70,000 loss from discontinued operations. Assume a 30% corporate tax rate on all items, Complex Company ENDED the year with 120,000 shares of common stock outstanding which includes the sale of 9.000 new shares on November 1. Complex also has 3,000 shares of Preferred Stock but did not sell any preferred stock during the year. Complex Company declared and paid $40,000 of cash dividends at various times during the year and paid $6,000 of those dividends to the preferred stockholders and $34,000 to the Common Stockholders. 1. Prepare the income statement for Complex Company beginning with the line called "Income Before Tax." Include the basic earnings per share presentation 2. Prepare the retained camnings statement for Complex Company assuming Complex had $618,000 in Retained Earnings on January 1 of this year. Case C Explain how the following transactions will change the following balance sheet categories (ignore any changes in income taxes caused by these transactions): Assets Liabilities Stock Equity a. Paid cash for a patent on a new product. b. Collected interest on an investment c. Purchased merchandise on account (assuming a perpetual inventory system)