Resource:ABC Financial Data Excelspreadsheet, ABC Supplemental Data, and the Income Statement and Balance Sheet Week 2 Individual assignment

Preparebond and lease amortization schedules using the values from Week 2, including appropriate bond and lease journal entries.

Createjournal entries for the book debt restructure.

Adjustthe balance sheet and income statements, including the bond and lease footnotes.

Submitthe amortization schedules, journal entries, and the adjusted Balance Sheet and Income Statement in MicrosoftExcelspreadsheets.

2013 Cash and Cash Equivalents Receivables, net Inventory Other Current Assets Property and Equipment, at cost Accumulated Depreciation and Amortization Goodwill Deferred Tax Asset Accounts Payable Accrued Salaries and Related Expenses Sales Taxes Payable Deferred Revenue Income Taxes Payable Current Installments of Long-Term Debt Other Accrued Expenses Long-Term Debt, excluding current installments Other Long-Term Liabilities Deferred Tax Liability Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Common stock Net Sales Cost of Sales Selling, General and Administrative Depreciation and Amortization Interest and Investment Income Interest Expense Provision for Income Taxes Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Other Comprehensive Income Dividends Tax rate Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation Restricted Stock Repurchases of Common Stock 4,960.00 1,398.00 2012 (12.00) (10.00) (2,243.00) 40% 103.00 123.00 228.00 (8,500.00) 2,494.00 1,413.00 11,512.00 900.00 38,491.00 (17,473.00) 1,046.00 473.00 5,192.00 1,200.00 472.00 1,262.00 (107.00) (783.00) 1,794.00 9,475.00 2,029.00 545.00 7,948.00 20,038.00 397.00 (10,694.00) 88.00 74,754.00 48,912.00 16,508.00 1,568.00 (87.00) 632.00 (2,686.00) 100.00 5.00 (1.00) (1,743.00) 40% 678.00 82.00 222.00 (4,000.00) 4,523.00 6,739.00 (1,332.00) (987.00) (1,028.00) (275.00) (12.00) (1,389.00) (206.00) 88.00 5,222.00 (1,289.00) (8,546.00) 241.00 (2,243.00) (37.00) 4,356.00 6,038.00 (1,276.00) (905.00) (1,121.00) (204.00) (10.00) (1,312.00) (170.00) 50.00 (32.00) (3,984.00) 784.00 (1,743.00) (59.00) 895.00 36,033.00 (15,684.00) 1,289.00 88.00 5,797.00 1,428.00 396.00 1,337.00 12.00 33.00 1,746.00 14,691.00 2,042.00 8,402.00 23,180.00 46.00 (19,194.00) 88.00 78,812.00 16,597.00 1,595.00 (12.00) 711.00 (3,082.00) Additional Info: Cash Sales Collections on Receivables Purchases Wages Payments to Suppliers Tax Payments Interest payments Capital Expenditures Payments for Businesses Acquired Proceeds from Sales of Property and Equipment Proceeds from Long-Term Borrowings Repayments of Long-Term Debt Repurchases of Common Stock Proceeds from Sales of Common Stock Cash Dividends Paid to Stockholders Other Financing Activities ABC Supplemental Data ACC/545 Version 6 University of Phoenix Material ABC Supplemental Data Note the following supplemental data: On January 1, 2013, ABC Company purchased a 10% bond having a maturity value of $600,000, for $647,912.52. The bond provides the bondholder with an 8% yield. The bond is dated January 1, 2013 and matures January 1, 2018, with interest receivable December 31 of each year. The company uses the effective-interest method to allocate unamortized discounts and premiums. On January 1, 2013, ABC Company signed a 6-year, noncancelable lease for a truck. The terms of the lease called for ABC Company to make annual payments of $10,000 at the beginning of each year, starting January 1, 2013. The truck has an estimated useful life of seven years and zero residual value. The truck ownership reverts to the lessor at the end of the lease term. ABC Company uses the straight-line method of depreciation for all of its assets. ABC Company's incremental borrowing rate is 9%, and the lessor's implicit rate is unknown. ABC Company is having financial difficulty and has requested the bank restructure its $4 million note outstanding. The current note has 5 remaining years and pays an interest rate of 10%. The current market rate for a loan of this nature is 12%. ABC's note was issued at face value. The bank has agreed to accept land in exchange for relinquishing its claim on this note. The land has a book value of $2.95 million and a fair value of $3.5 million. (Note. Do not include the restructure date in your updated statements.) Copyright XXXX by University of Phoenix. All rights reserved. 1 ABC Company Statement of Retained Earnings For the Year Ended December 31, 2013 January 1, as Reported Correction of depreciation error Cumulative increase in income from inventory method change 20038 -903 January 1, as adjusted 19906 Net Income 5385 25291 Dividends Balance, December 31 -2243 23048 771 ABC Company Statement of Owners Equity For the Year Ended December 31, 2013 Capital Stock: Preferred Stock Common Stock 0 88 88 Additional Paid in Capital 8402 Retained Earnings 23048 31538 Accumulated Other Comprehensive Income 46 Treasury Stock -19194 Total Shareholder's Equity 12390 ABC Company Statement of Comprehensive Income For the Year Ended December 31, 2013 Total Shareholder's Equity Net Earnings 5385 Other Comprehensive (Loss) Income: Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Other Comprehensive Income Total Other Comprehensive (Loss) Income -329 -12 -10 -351 COMPREHENSIVE INCOME 12390 5034 Foreign Currency TranslationDate Exchange Rate CA $ Cost of Land Conversion to US $ Comprehensive Income on Land 40543 1.00529 5250 5277.7725 0 40908 0.978857 5250 5138.99925 -138.77325 41274 1.003179 5250 5266.68975 127.6905 41639 0.940531 5250 4937.78775 -328.902 ABC Company acquired a Canadian Subsidiary whose only asset was land. ABC Company purchased the subsidiary on 12/31/10 for CA $5,250 and retaines 100% interest in the subsidiary. Go to www.x-rates.com and use the historic lookup feature to determine the exact exchange rates on 12/31/10, 12/31/11, 12/31/12 and 12/31/13