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ACC - Biden, Inc. statement of cash flows

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Question;The Balance Sheets of Biden, Inc. for the years ending December 31, 2014;and 2013 are shown below;12/31/14;12/31/13;Cash;189,800;100,200;Accounts;receivable;385,000;389,000;Allowance;for doubtful accounts;(57,000);(43,000);Inventory;545,600;328,400;Prepaid;expenses;46,000;26,000;Long-term;investments;384,000;528,000;Land;750,000;450,000;Buildings;3,156,000;2,556,000;Machinery;295,000;195,000;Office;equipment;116,000;144,000;Accumulated;depreciation;Buildings;(152,000);(128,000);Machinery;(98,000);(78,000);Office equipment;(35,800);(47,800);5,524,600;4,419,800;Accounts;payable;327,000;510,200;Accrued;liabilities;98,000;26,000;Dividends;payable;128,000;0;Bonds;payable;800,000;0;Discount;on Bonds;(24,000);0;Common;stock ($10 par);876,000;720,000;Additional;paid-in capital?common;2,145,000;1,921,800;Retained;earnings;1,174,600;1,241,800;5,524,600;4,419,800;Additional information;1. Income;Statement Data for Year Ended December 31, 2014;Income;before extraordinary item $272,000;Extraordinary;loss: Condemnation of land 132,000;Net;income $140,000;2. Cash;dividends of $128,000 were declared December 15, 2014, payable January 15, 2015. A 5% stock dividend was issued March 31, 2014;when the market value was $22.00 per share.;3. The;long-term investments were sold for $140,000.;4. A;building and land which cost $480,000 and had a book value of $300,000 were;sold for $400,000. The cost of the land;included in the cost and book value above, was $20,000.;5. The following entry was made to record an;exchange of an old machine for a new one;Machinery.................................................................... 160,000;Accumulated;Depreciation?Machinery...................... 40,000..................................................................... Machinery;60,000.............................................................................. Cash;140,000;6. A;fully depreciated copier machine (Office Equipment) which cost $28,000 was;written off.;7. The;company sold 12,000 shares of its common stock ($10 par) on June 15, 2014 for;$25 a share. There were 87,600 shares;outstanding on December 31, 2014.;8. Bonds;were sold at 97 on December 31, 2014.;9. Land;that was condemned had a book value of $240,000.;Instructions;Prepare a statement of;cash flows (indirect method). Ignore tax;effects.

 

Paper#39310 | Written in 18-Jul-2015

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