Question
Please answer ALL questions, not just one!!! Please show work. 1, The net income for Shepherd Corp. was $99,300 for the year ended 12/31/2016. Related
Please answer ALL questions, not just one!!! Please show work.
1, The net income for Shepherd Corp. was $99,300 for the year ended 12/31/2016. Related info follows:
Depreciation of equipment: $10,324
Loss on the sale of land: 4,283
Cash dividends paid: 13,821
Increase in Accounts Recievable: 15,292
Decreases in salaries payable 11,201
Increase in long-term notes payable 13,531
Sale of preferred stock for cash: 5450
Cash flows for operating activities during 2016 should be reported as?
2. If bond interest expense is $57,590, bond interest payable increased by $8,350 and bond premium decreased by $2,350, cash paid for bond interest is? _____
3. Gerald Co. decided to switch from the FIFO method of costing inventories to the average cost method at the beginning of 2016. At 12/31/2015, Gerald's inventory using FIFO was $29,800. Gerald's inventory using average cost would have been $49,130. Gerald's tax rate is 30%. What is the change to retained earnings? Write Journal entries associated, determining whether retained earnings would be debited or credited.
4. On 1/1/2016 Huxley Transport discovered that a 5-year insurance premium payment of $218,000 at the beginning of 2014 was debited to insurance expense. The correcting entry would include what change to Prepaid Insurance? Write journal entries to indicate whether you would debit or credit retained earnings.
5. Emma Engineering Group receives royalties on technical manual written by two of its engineers and sold to a publishing company. Royalties are 10% of net sales, receivable on October 1 for sales in Jan. through June and onApril1 for sales in July through Dec. of the prior year. Sales of the manual began in July 2015, and Emma accrues royalty revenue on $33,800 of sales at 12/31/2015.
Emma received royalties of $3,870 on April 1, 2016. On October 1, 2016 Emma received royalties of $3,055. The 2nd half of 2016 sales were estimated to be $41,400.
What is Emmas 2016 royalty revenue?
6. Gerald Co. decided to switch from the FIFO methods of costing inventories to the average cost method at the beginning of 2016. At 12/31/2015, Geralds inventory using FIFO was $41,902. Geralds inventory using average cost would have been $34,230. Geralds tax rate is 30%. What is the change to INVENTORY? Write journal entries to indicate debits and credits.
7. S company reported net income for 2016 of $153,965. The companys financial statements also included the following:
Decrease in Accounts receivable $14,401
Decrease in inventory: 8108
Decrease in accounts payable: 12,470
Amortization expense: 18,710
Loss on sale of land: 6,728
What is net cash provided by OPERATING activities under the INDIRECT method?
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