Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Textbook Question
Chapter 21, Problem 5P
Partially Completed Spreadsheet The following partially completed spreadsheet has been prepared for Perrin Company’s 2019 statement of
Additional relevant information:
- a.
Accumulated depreciation is a contra account for all the depreciable assets. Depreciation on these assets totaled $2,200 for the year. - b. On January 1, 2019, the company issued 10% bonds with a face value of $5,000 at 106. Interest was paid semiannually on June 30 and December 31. The bonds mature on January 1, 2024. Straight-line amortization is used for bond discount or premium. Bond interest expense was $440.
- c. Land was purchased for $3,200 during the year.
- d. Two hundred shares of common stock were issued for delivery equipment valued at $2,900 and office equipment valued at $3,100.
- e. Twenty shares of stock were issued as a stock dividend. The market price per share was $42.
- f. Office equipment with a cost of $1,000 and a book value of $300 was sold for $50.
- g. Fifty shares of its own common stock were reacquired by the company as
treasury stock . The company purchased the shares for $40 per share. - h. One hundred shares of Doe Company stock were purchased for $28 per share at year-end.
Required:
Complete the spreadsheet.
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Statement of Cash Flows
The following is a list of the items for Lombardo Company's 2019 statement of cash flows:
a. depreciation expense, $4,300
b. proceeds from sale of land, $5,500
c. payment of dividends, $5,000
d. net income, $7,800
e. conversion of bonds to common stock, $7,000 k. ending cash balance, $13,800
f. increase in accounts payable, $3,000
Required:
Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash
payments.
LOMBARDO COMPANY
Statement of Cash Flows
For Year Ended December 31, 2019
Operating Activities:
Adjustment for noncash income items:
g. proceeds from issuance of note, $6,100
h. gain on sale of land, $1,900
1. payment for purchase of building, $13,000
j. increase in accounts receivable, $2,800
Adjustments for cash flow effects
from working capital items:
Investing Activities:
Financing Activities:
00
00
Wildhorse Inc., had the following condensed balance sheet at the end of operations for 2019.
Cash
Current assets other than cash
Equity invesments
Plant assets (net)
Land
1.
During 2020, the following occurred.
2.
3.
4.
5.
6.
7.
WILDHORSE INC.
BALANCE SHEET
DECEMBER 31, 2019
$8,400
28,800
8.
20,000
67,100
40,300
$164,600
Current liabilities
Long-term notes payable
Bonds payable
Common stock
Retained earnings
A tract of land was purchased for $8,900.
Bonds payable in the amount of $15,000 were redeemed at par.
An additional $9,900 in common stock was issued at par.
Dividends totaling $9,400 were paid to stockholders.
Net income was $30,600 after allowing depreciation of $13,300.
Land was purchased through the issuance of $22,800 in bonds.
$15,200
25,500
25,000
75,000
23,900
$164,600
Wildhorse Inc. sold part of its investment portfolio for $12,900. This transaction resulted in a gain of $1,900 for the company.
No unrealized gains or losses were recorded on these investments in 2020.
Both…
Suppose you collected the following information of ABC corp. from the
financial statements published in 2019.
Entry
Total Current Assets 14050001206000
Current Liabilities
Notes Payable
Earning before
Interest and Taxes
Depreciation
Capital expenditures
Tax rate
Select one:
@a.
1279990X
b. 187578
0c
Estimate the Free Cash Flow available for ABC corp. at the end of 2019.
60030
2019
d. 1092412
e 30
2018
602000 571500
476990 457912
97680
159000
-30000
40%
Chapter 21 Solutions
Intermediate Accounting: Reporting And Analysis
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