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ACCT221 fall 2014




Question;#1A comparative;balance sheet for Bouvier Corporation is presented below;BOUVIER CORPORATION;Comparative Balance Sheet;2014 2013;Assets;Cash $ 36,000 $ 31,000;Accounts receivable (net) 70,000 60,000;Prepaid insurance 25,000 17,000;Land 18,000 40,000;Equipment 70,000 60,000;Accumulated depreciation (20,000) (13,000);Total;Assets $199,000 $195,000;Liabilities;and Stockholders' Equity;Accounts payable $ 11,000 $ 6,000;Bonds payable 27,000 19,000;Common stock 140,000 115,000;Retained earnings 21,000 55,000;Total;liabilities and stockholders' equity $199,000 $195,000;Additional information;1. Net;loss for 2014 is $20,000.;2. Cash;dividends of $14,000 were declared and paid in 2014.;3. Land was sold for cash at a loss of $4,000.;This was the only land transaction during the year.;4. Equipment with a cost of $15,000 and;accumulated depreciation of $10,000 was sold for $5,000 cash.;5. $22,000;of bonds were retired during the year at carrying (book) value.;6. Equipment was acquired for common stock. The;fair value of the stock at the time of the exchange was $25,000.;Instructions;Prepare a statement of cash flows for the year;ended 2014, using the indirect method.;#2The Joyce;Corporation experienced a fire on December 31, 2015, in which its financial;records were partially destroyed. It has been able to salvage some of the;records and has ascertained the following balances.;December;31, 2015 December 31;2014;Cash $ 30,000 $ 10,000;Receivables (net) 85,000 125,000;Inventory 200,000 180,000;Accounts payable 50,000 90,000;Notes payable 30,000 60,000;Common stock, $100 par 400,000 400,000;Retained earnings 130,000 101,000;Additional information;1. The;inventory turnover is 4 times;2. The;return on common stockholders' equity is 20%. The company had no additional;paid-in capital.;3. The;accounts receivable turnover is 8.6 times.;4. The;return on assets is 16%.;5. Total;assets at December 31, 2014, were $685,000.;Instructions;Compute the following for The Joyce Corporation.;(a) Cost;of goods sold for 2015.;(b) Net;sales (credit) for 2015.;(c) Net income for 2015.;(d) Total assets at December 31, 2015.;#3Manufacturing cost data for Pear Corporation;which uses a job order cost system, are presented below;iPear Mini iPear Video;Direct;Materials Used (a) $103,000;Direct;Labor $;70,000 140,000;Manufacturing;Overhead Applied 63,000 (d);Total;Manufacturing Costs 240,000 (e);Work;in Process, 1/1/13 (b) 45,000;Total;Cost of Work in Process 300,000 (f);Work;in Process, 12/31/13 (c) 40,000;Cost;of Goods Manufactured 205,000 (g);Instructions;Indicate the;missing amount for each letter. Assume that overhead is applied on the basis of;direct labor cost and that the rate is the same for both products.;#4The following information is available for Carrasco Corporation for;the year ended December 31, 2014;Collection;of principal on long-term loan to a supplier $15,000;Acquisition;of equipment for cash 10,000;Proceeds;from the sale of long-term investment at book value 20,000;Issuance;of common stock for cash 27,000;Depreciation;expense 28,000;Redemption;of bonds payable at carrying (book) value 35,000;Payment;of cash dividends 15,000;Net;income 25,000;Purchase;of land by issuing bonds payable 45,000;In addition;the following information is available from the comparative balance sheet for;Carrasco at the end of 2013 and 2014;2014 2013;Cash $ 66,000 $14,000;Accounts;receivable (net) 20,000 16,000;Prepaid;insurance 18,000 13,000;Total;current assets $104,000 $43,000;Accounts;payable $ 30,000 $20,000;Salaries;payable 3,000 7,000;Total;current liabilities $ 33,000 $27,000;Instructions;Prepare;Carrasco's statement of cash flows for the year ended December 31, 2014 using the;indirect method.;#5Presented below are incomplete 2013 manufacturing cost data for;Sesay Corporation.;Direct;Material Used;Direct Labor;Manufacturing;Overhead;Total;Manufacturing Costs;Work in;Process (1/1);Work in;Process (12/31);Cost of;Goods Manufactured;(a);$38,000;$60,000;$48,000;?;$120,000;$96,000;?;(b);$149,000;$53,000;$90,000;$292,000;?;$98,000;$311,000;(c);$53,000;$116,000;$121,000;$290,000;$413,000;?;$515,000;Instructions;Determine the missing amounts. (Remember the formula!);#6The;comparative condensed balance sheets of Sterling Corporation are presented;below.;STERLING CORPORATION;Comparative;Condensed Balance Sheets;December 31;2015 2014;Assets;Current assets $ 72,000 $ 80,000;Property, plant, and equipment (net) 95,400 90,000;Intangibles 33,600 40,000;Total assets $201,000 $210,000;Liabilities and stockholders' equity;Current liabilities $ 40,320 $ 48,000;Long-term liabilities 142,500 150,000;Stockholders' equity 18,180 12,000;Total liabilities and stockholders' equity $201,000 $210,000;Instructions;(a) Prepare a horizontal;analysis of the balance sheet data for Sterling Corporation using 2014 as a;base.;(b) Prepare a vertical analysis;of the 2015 balance sheet data for Sterling Corporation in columnar form.;#7Pinkney Corporation;incurred the following costs while manufacturing its product.;Materials used;in product $130,000 Advertising;expense $49,000;Depreciation;on plant 65,000 Property;taxes on plant 16,000;Property taxes;on store 7,700 Delivery;expense 20,000;Labor costs of;assembly-line workers 112,000 Sales;commissions 31,000;Factory;supplies used 24,000 Salaries;paid to sales clerks 58,000;Work-in-process;inventory was $23,000 at January 1 and $15,800 at December 31. Finished goods;inventory was $67,000 at January 1 and $52,600 at December 31.;Instructions;(a) Compute;cost of goods manufactured.;(b) Compute;cost of goods sold.;#8Jefferson;Corporation's comparative balance sheets are presented below.;JEFFERSON CORPORATION;Comparative Balance Sheets;December 31;2014 2013;Cash $;21,570 $ 10,700;Accounts;receivable 18,200 23,400;Land 18,000 26,000;Building 70,000 70,000;Accumulated;depreciation (15,000);(10,000);Total $112,770 $120,100;Accounts;payable $ 12,370 $31,100;Common;stock 75,000 69,000;Retained;earnings 25,400 20,000;Total $112,770 $120,100;Additional information;1. Net;income was $27,900. Dividends declared and paid were $22,500.;2. All other;changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated;depreciation. The land was sold for $5,900.;Instructions;(a) Prepare;a statement of cash flows for 2014 using the indirect method.;(b) Compute;free cash flow.;#9;Assuming;a statement of cash flows is prepared, indicate the reporting of the;transactions and events listed below by major categories on the statement. Use;the following code letters to indicate the appropriate category under which the;item would appear on the statement of cash flows.;Code;Cash Flows From Operating Activities;Add to Net Income A;Deduct from Net Income D;Cash Flows From Investing;Activities IA;Cash Flows From Financing;Activities FA;Category;1. Common stock is;issued for cash at an amount above par value.;2. Merchandise inventory;increased during the period.;3. Depreciation expense;recorded for the period.;4. Building was;purchased for cash.;5. Bonds payable were;acquired andretired at their carrying value.;6. Accounts payable;decreased during the period.;7. Prepaid expenses;decreased during the period.;8. Treasury stock was;acquired for cash.;9. Land is sold for cash;at an amount equal to book value.;10. Patent amortization;expense recorded for a period.;#10 Harrison Corporation's comparative balance;sheets are presented below.;HARRISON CORPORATION;Comparative Balance Sheets;December 31;2014;2013;Cash $;18,700 $ 22,700;Accounts receivable 24,700 22,300;Investments 25,000 16,000;Equipment 59,000 70,000;Accumulated depreciation (14,500);(10,000);Total $112,900 $121,000;Accounts payable $ 13,600 $11,100;Bonds payable 6,000 30,000;Common stock 50,000 45,000;Retained earnings 43,300 34,900;Total $112,900 $121,000;Additional information;Net income was $17,700.;Dividends declared and paid were $9,300.;Equipment which cost;$11,000 and had accumulated depreciation of $2,000 was sold for $4,000.;3. All;other changes in noncurrent account balances had a direct effect on cash flows;except the change in accumulated depreciation.;Instructions;(a) Prepare a statement of cash flows for 2014 using the indirect;method.;(b) Compute free cash flow.


Paper#40231 | Written in 18-Jul-2015

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