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COLE, INC.-Problem 24.01A accounting and SHORT COMPANY and JACKSON CORPORATION

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Question;Problem 24.01ACOLE, INC.Statement of Cash FlowsYear Ended December 31, 2013Cash Flows from Operating ActivitiesNet Income for yearAdjustments:DepreciationIncrease in accounts receivableIncrease in merchandise inventoryDecrease in accounts payableTotal adjustmentsNet cash provided by operating activitiesCash Flows from Investing ActivitiesPurchase of equipmentNet cash used in investing activitiesCash Flows from financing ActivitiesProceeds from issuance of bonds payableProceeds from issuance of common stockNet cash provided from financing activitiesNet increase in cashCash, January 1, 2013Cash, December 31, 2013Given Data P24.01ACOLE, INC.Comparative Balance SheetDecember 31, 2013 and 2012AssetsCashAccounts Receivable (net)Merchandise InventoryProperty, Plant, and EquipmentLess: Accumulated DepreciationTotal Assets201377,900129,60045,600240,000(37,000)456,100201239,50079,60043,000190,000(19,000)333,100Liabilities and Stockholders' EquityLiabilitiesAccounts PayableBonds PayableTotal Liabilities45,000150,000195,00062,000100,000162,000Stockholders' EquityCommon Stock ($1 par, 50,000 shares authorized)5,000 shares issued in 2012 and 6,000 sharesissued in 2013)Retained EarningsTotal Stockholders' EquityTotal Liabilities and Stockholders' Equity60,000201,100261,100456,10050,000121,100171,100333,100Additional Information for 2013:a. Net Incomeb. Depreciation recorded for yearc. Cash received for Bonds Payable issued at pard. Cash received from issuance of Common StockPar value of Common Stock issuedNumber of additional shares issuede. Paid cash for equipment$80,000$18,000$50,000$10,000$101,000$50,000Student Name:Class:Problem 24.03AJACKSON CORPORATIONStatement of Cash FlowsYear Ended December 31, 2013Cash Flows from Operating ActivitiesNet IncomeAdjustments:DepreciationIncrease in accounts receivableDecrease in inventoriesDecrease in prepaid advertisingDecrease in accounts payableIncrease in salaries payableDecrease in unearned revenuesIncrease in income taxes payableTotal adjustmentsNet cash provided by operating activitiesCash Flows from Investing ActivitiesPurchase of property, plant, and equipmentNet cash used in investing activitiesCash Flows from financing ActivitiesProceeds from issuance of common stockPayment of note payable due in 2015Payment of dividend on common stockNet cash used in financing activitiesNet increase in cashCash, January 1, 2013Cash, December 31, 2013Given Data P24.03AJACKSON CORPORATIONComparative Income StatementYear Ended December 31, 2013RevenuesCosts and ExpensesCost of Goods SoldSalaries ExpenseDepreciation ExpenseAdvertising ExpenseUtilities ExpenseTotal Costs and ExpensesNet Income Before Income TaxesIncome Taxes ExpenseNet Income After Income Taxes675,500429,000125,00015,00014,90018,000601,90073,60018,40055,200JACKSON CORPORATIONComparative Balance SheetDecember 31, 2013 and 2012AssetsCashAccounts Receivable (Net)Merchandise InventoryPrepaid AdvertisingProperty, Plant, and EquipmentLess: Accumulated DepreciationTotal AssetsLiabilities and Stockholders' EquityLiabilitiesAccounts PayableSalaries PayableUnearned RevenuesIncome Taxes PayableNote Payable - 2015Total LiabilitiesStockholders' EquityCommon Stock ($2 par)Retained EarningsTotal Stockholders' EquityTotal Liabilities and Stockholders' EquityAdditional Information:a. No Property, Plant, and Equipment disposed of during yearb. Paid cash for additions to Property, Plant, and Equipmentc. Cash paid for dividends on Common Stockd. Issued Common Stock at par value for cashe. Paid cash to retire long-term note payable201381,00055,65049,0008,000120,000(25,000)288,650201270,00052,00054,00010,000100,000(10,000)276,00050,4504,5004,0006,00064,95079,0003,5005,0005,00030,000122,50075,000148,700223,700288,65050,000103,500153,500276,000$10,000Student Name:Class:Problem 24.04ASHORT COMPANYStatement of Cash FlowsYear Ended December 31, 2013Cash Flows from Operating ActivitiesNet Income for YearAdjustments:DepreciationLoss on sale of equipmentIncrease in accounts receivableDecrease in merchandise inventoryDecrease in prepaid rentDecrease in accounts payableIncrease in income tax payableTotal adjustmentsNet cash provided by operating activitiesCash Flows from Investing ActivitiesPurchase of landProceeds from sale of equipmentProceeds from sale of bond investmentPurchase of equipmentNet cash used in investing activitiesCash Flows from Financing ActivitiesProceeds from issuance of bonds payablePayment of dividend on common stockNet cash used in financing activitiesNet increase in cashCash, January 1, 2013Cash, December 31, 2013Given Data P24.04ASHORT COMPANYComparative Balance SheetDecember 31, 2013 and 2012AssetsCashAccounts Receivable (Net)Merchandise InventoryPrepaid RentLandProperty, Plant, and EquipmentLess: Accumulated Depreciation-PPEInvestment in TVA BondsTotal Assets2013116,87586,00082,6505,50085,000189,000(20,900)30,000574,125201253,25067,25074,0004,50025,000219,000(21,900)50,000471,100Liabilities and Stockholders' EquityLiabilitiesAccounts PayableIncome Taxes PayableBonds PayableTotal Liabilities66,3009,250140,000215,55086,6009,500100,000196,100Stockholders' EquityCommon StockRetained EarningsTotal Stockholders' EquityTotal Liabilities and Stockholders' Equity105,000253,575358,575574,12575,000200,000275,000471,100SHORT COMPANYIncome StatementYear Ended December 31, 2013RevenuesCosts and ExpensesCost of Goods SoldDepreciation ExpenseSelling and Administrative ExpensesInterest ExpenseLoss on Sale of EquipmentIncome Taxes ExpenseTotal Costs and ExpensesNet Income After Income TaxesAdditional Information:a. Cost of land acquiredPaid half in cashCommon Stock issued for balanceb. Cash received for sale of equipmentOriginal cost of equipment soldDepreciation taken on equipment soldDepreciation expense for 2013Additional equipment was purchased for cashc. Issued bonds payable at par value for cash.d. Bond investments sold at no gain or losse. Dividends paid on Common Stock809,000475,7509,000197,65018,50010,00024,525735,42573,575$60,000$20,000$40,000$10,000$9,000$20,000$20,000

 

Paper#38880 | Written in 18-Jul-2015

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