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AC5230 WEEK1 homework




Question;Create a single Excel document with one worksheet/tab for each problem. Each problem is worth 20 points.Problem 1The following accounts appeared on the trial balance of Gaudette Company at December 31, 2008. All accounts have normal balances.Notes Payable $64,000 Accounts Receivable $172,800Accumulated Depreciation - Bldg. $261,000 Prepaid Expenses $18,750Supplies on Hand $12,600 Customers' Deposits $1,250Accrued Salaries and Wages $11,400 Common Stock*** $375,000*Investments in Debt Securities $93,800 Cash $56,750 Inventories (average cost) $526,750Bonds Payable Due 1/1/12 $400,000 Land at Cost $155,000Allowance for Doubtful Accts. $2,600 Trading Securities**** $24,400Franchise $64,300 Accrued Interest on Notes Payable $650Notes Receivable $46,000 Buildings at Cost $642,000Income Taxes Payable $52,000 Accounts Payable $136,650Preferred Stock** $250,000 Additional Paid-in Capital $54,600Appropriated Retained Earnings $98,000 Unappropriated Retained Earnings ??? *The company intends to hold the securities until maturity, which is in ten years.**8% cumulative, $10 par value, 25,000 shares authorized and outstanding.***$1 par value, 400,000 shares authorized, 375,000 shares issued and outstanding.****The company intends to sell the trading securities in the next year.Directions (20 Points): Prepare a classified balance sheet for Gaudette Company on December 31, 2008 on a separate Excel spreadsheet as directed on the Problem Set 1 directions.Problem 2The following balance sheet was prepared by the bookkeeper for Perry Company as of December 31, 2008.Perry CompanyBalance Sheetas of December 31, 2008Cash $ 80,000 Accounts payable $ 75,000Accounts receivable (net) 52,200 Long-term liabilities 100,000Inventories 57,000 Stockholders' equity 218,500Investments 76,300Equipment (net) 96,000Patents 32,000 $393,500 $393,500The following additional information is provided:1. Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted.2. The net accounts receivable balance includes:(a) accounts receivable?debit balances $60,000,(b) accounts receivable?credit balances $4,000,(c) allowance for doubtful accounts $3,800.3. Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.4. Investments include investments in common stock, trading $19,000 and available-for-sale $48,300, and franchises $9,000.5. Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.Directions (20 points) Prepare a balance sheet in good form (stockholders' equity details can be omitted.)Problem 3Presented below is financial information of the Lilley Corporation for 2008Beginning Retained Earnings, 1/1/08 $950,000Gain on the Sale of Investments (normal recurring) $110,000Sales for the Year $30,000,000Loss Due to Flood Damage (unusual & infrequent) $125,000*Cost of Goods Sold $21,000,000Loss on Disposal of Retail Division $450,000*Interest Revenue $70,000Loss on Operations of Retail Division $460,000*Selling and Administrative Expenses 5,500,000Dividends Declared on Common Stock $230,000Write-Off of Goodwill $520,000Dividends Declared on Preferred Stock $80,000Federal Income Tax on Operations for 2008 1,600,000*net of taxLilley Corporation decided to discontinue its retail operations and to retain its manufacturing operations. On August 15, Lilley sold the retail operations to Schoen Company. During 2008, there were 250,000 shares of common stock outstanding all year.Directions (20 Points): Prepare a multiple-step income statement for the year 2008 on a separate Excel spreadsheet as directed in the Problem Set 1 directions.Problem 4December 312009 2008Cash $90,000 $27,000Accounts Receivable $92,000 $80,000Allowance for Doubtful Accounts ($4,500) ($3,100)Inventory $155,000 $175,000Prepaid Expenses $7,500 $6,800Land $90,000 $60,000Buildings $287,000 $244,000Accumulated Depreciation ($32,000) ($13,000)Patents $20,000 $35,000$705,000 $611,700Accounts Payable $90,000 $84,000Accrued Liabilities $54,000 $63,000Bonds Payable $125,000 $60,000Common Stock $100,000 $100,000Retained Earnings - Appropriated $80,000 $10,000Retained Earnings - Unappropriated $271,000 $302,700Treasury Stock, At Cost ($15,000) ($8,000)$705,000 $611,700For 2009 YearNet Income $58,300Depreciation Expense $19,000Amortization of Patents $5,000Cash Dividends Declared and Paid $20,000Gain Or Loss On Sale of Patents NoneDirections (20 Points):Given the above information, prepare a statement of cash flows for Doug Corporation for the year 2009 on a separate Excel spreadsheet as directed on the Problem Set 1 directions.Problem 5The net changes in the balance sheet accounts of Lenon, Inc. for the year 2008 are shown below:Account Debit Credit Cash $ 125,600Accounts receivable $ 64,000Allowance for doubtful accounts 14,000Inventory 217,200Prepaid expenses 20,000Long-term investments 144,000Land 300,000Buildings 600,000Machinery 100,000Office equipment 28,000Accumulated depreciation:Buildings 24,000Machinery 20,000Office equipment 12,000Accounts payable 183,200Accrued liabilities 72,000Dividends payable 128,000Premium on bonds 32,000Bonds payable 800,000Preferred stock ($50 par) 60,000Common stock ($10 par) 156,000Additional paid-in capital?common 223,200Retained earnings 87,200 $1,705,200 $1,705,200Additional information:1. Net income for the year was $140,000.2. Cash dividends of $128,000 were declared December 15, 2008, payable January 15, 2009. A 5% stock dividend was issued March 31, 2008, when the market value was $22 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 160,000Accumulated Depreciation?Machinery 40,000Machinery 60,000Cash 140,0006. A fully depreciated copier machine which cost $28,000 was written off.7. Preferred stock of $60,000 par value was redeemed for $80,000.8. The company sold 12,000 shares of its common stock ($10 par) on June 15, 2008 for $25 a share. There were 87,600 shares outstanding on December 31, 2008.9. Bonds were sold at 104 on December 31, 2008.Directions (20 points) Prepare a statement of cash flows. Ignore tax effects.


Paper#40643 | Written in 18-Jul-2015

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