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Principles of Accounting II, ACCT221, Section 4010, Quiz #2 (Take Home), Chapters 17, 18, 19 & 20

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Principles of Accounting II;ACCT221, Section 4010;Quiz #2 (Take Home);Chapters 17, 18, 19 & 20;AT THE BEGINNING OF CLASS;#1 A 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.;#2 The 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.;#3 Manufacturing 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.;#4 The 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.;# 5 Presented 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 !);#6 The 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.;#7 Pinkney 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.;# 8 Jefferson 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 and retired 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;1.;Net income was $17,700. Dividends declared and paid were $9,300.;2.;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#77467 | Written in 18-Jul-2015

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