Net income240,000Patent amortization expense4,000Preferred stock issued to convert bonds50,000Retirement of bonds100,000Proceeds from sale of land80,000Ending cash balance400,000Required:Prepare Piper's statement of cash flows for 2020, using the indirect method. The information below was taken from the records of the Piper Company for the year ended December 31, 2020:Acquisition of building$250,000Amortization of premium on bonds payable2,000Decrease in deferred income tax liability8,000Decrease in inventories6,000Decrease in salaries payable2,000Depreciation expense24,000Dividends paid11,000Loss on sale of land18,000Increase in accounts payable14,000Increase in accounts receivable5,000Issuance of long-term bonds payable150,000Net income240,000Patent amortization expense4,000Preferred stock issued to convert bonds50,000Retirement of bonds100,000Proceeds from sale of land80,000Ending cash balance400,000Required:

Statement of cash flows is a statement which shows all cash inflows and cash outflows of the…

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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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The balance sheets for Mary Company showed the following information. Additional information concerning transactions and events during 2021 are presented below. Mary CompanyBalance Sheet December 31 2021 2020 Cash $ 31,209 $ 10,302 Accounts receivable (net) 43,733 20,503 Inventory 35,350 42,420 Long-term investments 0 15,150 Property, plant & equipment 238,865 151,500 Accumulated depreciation (38,077) (25,250) $311,080 $214,625 Accounts payable $ 17,170 $ 26,765 Accrued liabilities 21,210 17,170 Long-term notes payable 70,700 50,500 Common stock 131,300 90,900 Retained earnings 70,700 29,290 $311,080 $214,625 Additional data: 1. Net income for the year 2021, $61,610. 2. Depreciation on plant assets for the year, $12,827. 3. Sold the long-term…
During 2023, Blossom Company constructed various assets at a total cost of $4.10 million. The weighted- average accumulated expenditures on assets qualifying for capitalization of interest during 2023 were $2.80 million. The company had the following debts outstanding at December 31, 2023: 1. 2. 8%, five-year note to finance construction of various assets, dated January 1, 2023, with interest payable annually on January 1 $1,780,000 3. 10%, ten-year bonds issued at par on December 31, 2018, with interest payable annually on December 31 $2,040,000 7%, three-year note payable, dated January 1, 2022, with interest payable annually on January 1 $1,020,000 Calculate the total interest to be capitalized for 2023. Total interest to be capitalized
Presented below is selected information pertaining to the Cassie Inc:Cash balance, January 1, 2020- P13,000Accounts receivable, January 1, 2020- P19,000Collections from customers in 2020- P210,000 Capital account balance, January 1, 2020- P38,000Total assets, January 1, 2020- P75,000Cash investment added, July 1, 2020-P5,000Total asset, December 31, 2020- P101,000 Cash balance, December 31, 2020- P20,000Accounts receivable, December 31, 2020- P36,000Merchandise taken for personal use during 2020- P11,000Total liabilities, December 31, 2020- P41,000How much is the net income for 2020?
what is the post-tax loss from discontinued operation for 2020?
The following information is from Best Ltd's Statement of Financial Position as at 30 June 2020: 2019 2020 Current assets Cash $8,000 $29,000 Accounts receivable 42,000 38,000 Allowance for doubtful debts (2,400) (4,000) Inventory 34,000 40,000 Prepaid insurance 12,000 4,000 Non-current assets Land 72,000 84,000 Buildings 102,000 108,000 Accumulated depreciation-building (42,000) (46,000) Equipment 56,000 50,000 Accumulated depreciation- equipment (18,000) (22,000) Current liabilities Accounts payable 38,000 34,000 Accrued expense payable 15,000 16,000 Income tax payable 9,000 18,400 Final dividend payable 8,000 10,000 Non-current liabilities Notes payable 82,000 62,000 Equity Share capital 70,000 80,000 General reserve 16,600 30,600 Retained earnings 25,000 30,000 The following information is from Best Ltd's Statement of Profit or Loss for the financial year ended 30 June 2020: Sales revenue $124,000 Gain…
Based on the accounting records, the total assets book value as of January 1, 2021 is P1,875,362.99 but due to inflation the current cost is determined to be P1,990,800.21 while the total liabilities is P988,123.54 as of January 1, 2021. The company received additional investments of P651,345.22 during the year while dividends declared and paid is P450,650. At the end of the year, the books reported Total assets of P2,992,748.55 and liabilities of P1,555,661.24. What is the net income (loss) under the physical capital concept?
Bonita Corporation’s balance sheet at the end of 2019 included the following items. Current assets (Cash $82,000) $236,730 Current liabilities $151,730 Land 32,040 Bonds payable 101,730 Buildings 121,730 Common stock 182,040 Equipment 92,040 Retained earnings 46,040 Accum. depr.-buildings (31,730 ) Total $481,540 Accum. depr.-equipment (11,000 ) Patents 41,730 Total $481,540 The following information is available for 2020. 1. Net income was $56,660. 2. Equipment (cost $21,730 and accumulated depreciation $9,730) was sold for $11,730. 3. Depreciation expense was $5,730 on the building and $10,730 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,730. 6. An addition to the building was completed at a cost of $28,730. 7. A long-term investment in stock was purchased for $16,000. 8. Bonds payable of $52,040 were issued. 9. Cash dividends of $30,000 were declared and paid. 10. Treasury stock was…
ABC Company reported pretax financial income of P6,200,000 for the calendar year 2020. Included in the other income section of the income statement was P200,000 of interest revenue from government bonds held by the entity. The income statement also included depreciation expense of P500,000 for a machine that cost P3,000,000. The income tax return reported P600,000 as depreciation on the machine. The enacted tax rate is 30% for 2020 and future years. What is the current tax expense for 2020? (Round answer to whole number)
Accounting information from the records of the Sarah Jane's Clothing Corporation at the end of 2020 is shown below: Net income $100,000 Proceeds from sale of long-term investment in marketable securities 20,000 Proceeds from sale of building 80,000 Gain on sale of building 35,000 Increase in accounts receivable 5,000 Increase in accounts payable 7,000 Cash dividends dedared 5,000 Depreciation expense 18,000 Patent amortization expense 1,000 Amortization of premium on bonds payable 1,500 Purchase of equipment 30,000 Issue of common stock 25,000 Increase in accrued liabilities 4,000 Decrease in prepaid expenses 2,000 Required: Prepare Sarah Jane's Clothing 's 2020 Net Cash Flow from Operating Activities section of a statement of cash flows, using the indirect method. For those boxes in which you must enter subtractive or negative numbers use a minus sign.
Given the following account balances of MASK RIDER Co. for the year ended December 31, 2020, propare a Statomont of Financial Position using the report form. Mask Rider, capital Beg. Balance PO Contribution 30, 000 DUE ON MAY 15, 2021 Withdrawal 15, 000 Additional contribution 5, 000 Net Income Ending Balance 57, 450 Property, Plant and Equipment P 300, 000 Accumulated Depreciation 5, 000 Accounts payable 8, 110 Unearned income 1, 395 Cash 44, 535 Prepaid rent 5, 000 Salaries payable 1, 000 Long-term note payable 23, 000 Accounts receivable 575 Merchandise Inventory 15,345 Utlities payable 4, 000
The current sections of rita Company's Statement of Financial Position as at 31 December 2019 and 2020, are presented below. rita net income for 2020 was RM203,000. Depreciation expense was RM25,000. 2019 2020 (RM) (RM) Current asset Cash 115,000 99,000 Accounts receivable 105,000 89,000 154,000 172,000 Inventory Prepaid expense 27,000 21.000 Total current assets 401,000 381.000 Current liabilities Accrued expenses payable Accounts payable 15,000 5,000 85.000 93.000 Total current liabilities 100,000 98,000 Prepare the net cash provided by operating activities section of the company's Statement of Cash Flows for the year ended 31 December 2020, using the indirect method.
Subject: acounting

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