On January 1, 20x3 Daenerys Targaryen and Jon Snow formed Snow Dragon, Inc., a domestic corporation dedicated to the eradication of White Walkers from the lands of Westeros. The information below includes data from Snow Dragon's operations in 20x6. a. Snow Dragon's 20x6 net income was $480,000. b. Common stock issued for $78,000 cash. c. Snow Dragon's Board of Directors declared and paid cash dividend of $12,000. d. Paid $120,000 cash to settle a note payable at its $120,000 maturity value. e. Paid $118,000 cash to acquire its treasury stock. f. Snow Dragon purchased equipment for $94,000 cash. Use Snow Dragon's information provided above to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.) Snow Dragon, Inc. Statement of Cash Flows (partial) For the year ended December 31, 20x6 Cash flows from financing activities

On January 1, 20x3 Daenerys Targaryen and Jon Snow formed Snow Dragon, Inc., a domestic corporation dedicated to the eradication of White Walkers from the lands of Westeros. The information below includes data from Snow Dragon's operations in 20x6. a. Snow Dragon's 20x6 net income was $480,000. b. Common stock issued for $78,000 cash. c. Snow Dragon's Board of Directors declared and paid cash dividend of $12,000. d. Paid $120,000 cash to settle a note payable at its $120,000 maturity value. e. Paid $118,000 cash to acquire its treasury stock. f. Snow Dragon purchased equipment for $94,000 cash. Use Snow Dragon's information provided above to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.) Snow Dragon, Inc. Statement of Cash Flows (partial) For the year ended December 31, 20x6 Cash flows from financing activities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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subject:accounting
Kath, Julia and Janel formed a joint operation. Kath is to act as managing joint operator and is designated to record the joint operation accounts in his books. As manager, he is allowed a salary of P12,000. Remaining profit (loss) is to be divided equally.The following balances appear at the end of 20x6 before adjustments for joint operation’s inventory and profits. Joint operations cash (dr), P48,000; Julia, capital (dr), 3,000; Janel, capital (cr), P27,000. The arrangement is to terminate on December 31, 20x6 with unsold merchandise costing P10,400. Assuming that the joint operations profit is P5,000, what is the balance of the Joint Operation’s account before the distribution of profit?
Problem 19-29 (Algorithmic) (LO. 3) At her death, Chow owned 55% of the stock in Finch Corporation, with the balance held by family members. In the past five years, Finch has earned average net profits of $1,950,000, and on the date of Chow's death, the book value of its stock is $4,875,000. An appropriate rate of return for Finch's business is in is 6.95%. If required, round your intermediate computations to the nearest dollar. a. If goodwill exists, the total value of Finch stock is $ What value would the IRS argue that the stock Chow owned should be included in her estate? b. Considering the facts given, identify some factors that could be present to reduce the value of such goodwill by selecting "Yes" for ones that can impact a goodwill valuation and "No" for ones that won't. 1. Extraordinary gains. 2. Lower than industry average salaries. 3. Chow was the key person in the success of the business, 4. The appropriate rate of return for this type of business is low.
Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $278,000, $314,000, and $208,000, respectively. They anticipate annual profit of $480,000 and are considering the following alternative plans of sharing profits and losses: o. Equally, b. In the ratio of their initial investments; or c. Salary allowances of $131,000 to Conway, $102,000 to Chan, and $77,000 to Scott and interest allowances of 10% on initial Investments, with any remaining balance shared equally. Required: 1. Use the schedule to show how a profit of $480,000 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Sharing Plan (0) ME ProM nicht Calculations Share to Share to Conway Chan Share to Scott $ Total
Exercise 5-16 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $114,000. Current E & P for the year is $342,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $182,400 ($91,200 to Elizabeth and $91,200 to Jonathan) on April 30 and a total of $319,200 ($159,600 to Jonathan and $159,600 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $182,400 From Current E & P From…
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X, owns an idle land worth 1M. X works in MCDO as an accounting manager. He decided to exchange the land to shares of stocks of MCDO, a domestic corp. for 10,000 shares with value of 1.2M. As a result, X obtains control, having 90% interest, in the corporation. What is the CGT? a. 6% of 1.2M b. 6% of 200,000 c. 6% of 1M d. None of the above
Kath, Julia and Janel formed a joint operation. Kath is to act as managing joint operator and is designated to record the joint operation accounts in his books. As manager, he is alloweda salary of P12,000. Remaining profit (loss) is to be divided equally.The following balances appear at the end of 20x6 before adjustments for joint operation's inventory and profits. Joint operations cash (dr). P48,000; Julia, capital (dr), 3.000; Janel, capital (cr). P27,000. The arrangement is to terminate on December 31, 20x6 with unsold merchandise costing P10,400. Assuming that the joint operations profit is P5,000, what is the balance of the Joint Operation's account before the distribution of profit? 5,400(Dr) P6,400(Cr) 19,000(Dr) 15,400(Dr) During the liquidation, the sale of all the assets of liquidated corporation resulted to net proceeds of P500,000. Liquidation expense amounting to P30,000 has been paid at the start of liquidation from the net proceeds of disposal of all assets. Before the…
Khaki Company is a Subchapter S corporation. It properly reported net income of $100,000 for financial statement purposes. It had charitable contributions of $5,000 and dividend income of $10,000 from a large domestic publicly traded company. What is the ordinary business income of Khaki Company that will be reported to its shareholders on Schedule K-1? Multiple Choice $90,000. $93,000. $95,000. $100,000.