Question
Pharoah Companyhad these transactions during the current period. June 12 Issued82,500shares of $1par value common stock for cash of $309,375. July 11 Issued4,250shares of $104par
Pharoah Companyhad these transactions during the current period.
June 12 Issued82,500shares of $1par value common stock for cash of $309,375.
July 11 Issued4,250shares of $104par value preferred stock for cash at $112per share.
Nov. 28 Purchased1,950shares of treasury stock for $9,750.
Prepare the journal entries for thePharoah Companytransactions shown above.(Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
On January 1,Culver Corporationhad62,800shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.
Apr. 1 Issued17,550additional shares of common stock for $11per share.
June 15 Declared a cash dividend of $1.60per share to stockholders of record on June 30.
July 10 Paid the $1.60cash dividend.
Dec. 1 Issued7,800additional shares of common stock for $12per share.
Dec. 15 Declared a cash dividend on outstanding shares of $2.00per share to stockholders of record on December 31.
(a)Prepare the entries, if any, on each of the three dates that involved dividends.(Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 1,225.)
The current sections ofPina Colada Corp.'s balance sheets at December 31, 2021 and 2022, are presented here.Pina Colada Corp.'s net income for 2022 was $419,100. Depreciation expense was $69,300.
2022 2021
Current assetsCash $102,300 $146,850
Accounts receivable 140,250 113,850
Inventory 128,700 102,300
Prepaid expenses 28,050 31,350
Total current assets $399,300 $394,350
Current liabilitiesAccrued expenses payable $9,900 $26,400
Accounts payable 145,200 118,800
Total current liabilities $155,100 $145,200
Make the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2022, using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Pina Colada Corp.
Partial Statement of Cash Flows
For the Year Ended December 31, 2022
Cash Flows from Operating Activities $
Net Income
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
Decrease in Accrued Expenses Payable $
Decrease in Prepaid Expenses
Depreciation Expense
Increase in Accounts Payable
Increase in Accounts Receivable
Increase in Inventory
Net Cash Provided by Operating Activities $
Presented below are the financial statements ofNovak Company.
Novak Company
Comparative Balance Sheets
December 31
Assets 2022 2021
Cash $112,000 $64,000
Accounts receivable 64,000 44,800
Inventory 89,600 64,000
Property, plant, and equipment 192,000 249,600
Accumulated depreciation (102,400) (76,800)
Total $355,200 $345,600
Liabilities and Stockholders' Equity
Accounts payable $60,800 $48,000
Income taxes payable 22,400 25,600
Bonds payable 54,400 105,600
Common stock 57,600 44,800
Retained earnings 160,000 121,600
Total $355,200 $345,600
Novak Company
Income Statement
For the Year Ended December 31, 2022
Sales revenue $774,400
Cost of goods sold 560,000
Gross profit 214,400
Selling expenses $57,600
Administrative expenses 19,200 76,800
Income from operations 137,600
Interest expense 9,600
Income before income taxes 128,000
Income tax expense 25,600
Net income $102,400
Additional data:
1.Depreciation expense was $56,000.
2.Dividends declared and paid were $64,000.
3.During the year equipment was sold for $27,200cash. This equipment cost $57,600originally and had accumulated depreciation of $30,400at the time of sale.
Part1 Make a statement of cash flows using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Part2 Compute free cash flow.(Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Free cash flow $
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