Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 in last picture: at the beginning of thgr next year... 1. As the beginning of the year, the non-profit Prime Cardiac Pump (PCP)

Question 2 in last picture: at the beginning of thgr next year...
image text in transcribed
image text in transcribed
image text in transcribed
1. As the beginning of the year, the non-profit Prime Cardiac Pump (PCP) shows the following balances in the bahnce shect: Prime Cardiac Pump Bulance Sheet Assets tiabilities + Net Assets. Cash 57,000 Wages Payable 23,000 Securities 417,000 Accounts Payable 17,000 Recemables 43,000 Notes Payable 460,000 PPQE2,930,000 Mortgage 1,570,000 Goodwill 23,000 Total tiabilities 2,070,000 Patents 374,000 Net Assets (NA) 1,774,000 Total Assets 3,844,000 Lisbilities + NA3,844,000 Over the following year the agency records the following transactions: 1. Pays wages of 23,000 2. Receives 20,000 owed to it for past goods delivered 3. Depreciates its facility by 100,000 4. Sells off the patent rights of a new pump for (600,000, half paid in eash, and half to be paid in two years. It had originally purchased the patent for 374,000 . 5. Borrows 500.000 to upgrade the factory. 6. Pays 17,000 to vendors to whom it owed money. 7. Invests 300,000 in upgrading HVAC systems in the factory. inney up-dint for the salk 16. Thyos of 200000 on the mortges? batases. Then cakulute proft/ hou and develop a cash fow satemen 2. At the beginning of the next year, the board of trustees decides to sell POP to a large, multinational medical de vice holding company, and to use the proceeds to start a foundation. The holding company pays 10,000,000 for PCP, which is now reincorporated as a for-profit company. What does its balance sheet look like now

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services A Systematic Approach

Authors: William Messier, Steven Glover, Douglas Prawitt

9th edition

1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343

More Books

Students also viewed these Accounting questions

Question

=+7. Describe some of the privacy concerns of online shoppers.

Answered: 1 week ago

Question

2. Do you agree that unions stifle creativity? Why or why not?

Answered: 1 week ago