Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Chapter 14, Problem 52P
Additional transactions were as follows:
- a. Purchased equipment costing $50,000.
- b. Sold equipment costing $60,000, with a book value of $25,000, for $40,000.
- c. Retired
preferred stock at a cost of $110,000. (The premium is debited toRetained Earnings .) - d. Issued 10,000 shares of common stock (par value, $4) for $10 per share.
- e. Reported a loss of $15,000 for the year.
- f. Purchased land for $50,000.
Required:
Prepare a statement of
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Students have asked these similar questions
a. Purchased 16,000 common shares of Heller Co. at $16 cash per share.
b. Received a cash dividend of $1.25 per common share from Heller.
c. Year-end market price of Heller common stock is $17.50 per share.
d. Sold all 16,000 common shares of Heller for $252,480 cash.
Note: For each account catégory, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.
Balance Sheet
Transaction
Cash
Asset
Noncash Assets
Liabilities
Contrib.
Capital
Earned
Capital
Income Statement
Revenues
Expenses
Net
Income
(256,000)✔
256,000
0 ✓
Cash
=
Investment
= ✓ N/A
✔ N/A
=
N/A
M/A
N/A
(b)
20,000 ▼
20,000✓
20,000 ✔
0✓ =
20,000 ✓
Cash
✓ N/A
÷ N/A
÷
✓ N/A
=
Retained earnings
Dividend income
=
✓ N/A
=
(c)
0✓
24,000 ✔
0✓
0✓
24,000 ▼
24,000
く
24,000
Cash
= Investment
✓ N/A
=
N/A
Retained earnings
nrealized gain
÷
(d)
252,480✔
(2.240,000) x-
28,480 x
Cash
÷
✓…
Carleton Builders Ltd. recorded the following summarized transactions during the current year.
a. The company originally sold and issued 108,000 common shares. During the current year 10,000 shares
were repurchased from the shareholders and retired. Near the end of the current year, the board of
directors declared and paid a cash dividend of $9 per share. The dividend was recorded as follows:
General Journal
Retained earnings
Cash ($9 x 98,000)
Dividend income ($9 × 10,000)
Debit Credit
972,000
882,000
90,000
b. Carleton Builders Ltd. purchased a machine that had a list price of $98,000. The company paid for the
machine in full by issuing 10,000 common shares (market price = $8.90). The purchase was recorded as
follows:
Machine
General Journal
Share capital ($8.90 × 10,000)
Gain on purchase of equipment
Debit Credit
98,000
89,000
9,000
c. Carleton needed a small structure for temporary storage. A contractor quoted a price of $777,000. The
company decided to build the structure itself.…
m. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (g).
Description
Debit
Credit
n. Received interest of $6,000 from the Solstice Corp. investment in (f).
Description
Debit
Credit
o. Sold Solstice Corp. bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980.
Description
Debit
Credit
p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for 6
months. The amortization is determined using the straight-line method.
Description
Debit
Credit
q. Accrued interest for 3 months on the Dream Inc. bonds purchased in (1).
Description
Debit
Credit
Chapter 14 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Of the three categories on the statement of cash...Ch. 14 - Prob. 4DQCh. 14 - Why is it better to report the noncash investing...Ch. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Explain how a company can report a loss and still...Ch. 14 - In computing the periods net operating cash flows,...Ch. 14 - Prob. 10DQ
Ch. 14 - In computing the periods net operating cash flows,...Ch. 14 - Explain the reasoning for including the payment of...Ch. 14 - What are the advantages in using worksheets when...Ch. 14 - Prob. 14DQCh. 14 - Cash inflows from operating activities come from...Ch. 14 - Prob. 2MCQCh. 14 - Prob. 3MCQCh. 14 - Sources of cash include a. profitable operations....Ch. 14 - Uses of cash include a. cash dividends. b. the...Ch. 14 - Prob. 6MCQCh. 14 - Prob. 7MCQCh. 14 - Which of the following adjustments to net income...Ch. 14 - An increase in accounts receivable is deducted...Ch. 14 - An increase in inventories is deducted from net...Ch. 14 - The gain on sale of equipment is deducted from net...Ch. 14 - Which of the following is an investing activity?...Ch. 14 - Which of the following is a financing activity? a....Ch. 14 - Prob. 14MCQCh. 14 - A worksheet approach to preparing the statement of...Ch. 14 - In a completed worksheet, a. the debit column...Ch. 14 - Prob. 17BEACh. 14 - Prob. 18BEACh. 14 - Prob. 19BEACh. 14 - Prob. 20BEACh. 14 - Swasey Company earned net income of 1,800,000 in...Ch. 14 - Prob. 22BEACh. 14 - Prob. 23BEACh. 14 - During 20X2, Norton Company had the following...Ch. 14 - Prob. 25BEBCh. 14 - Prob. 26BEBCh. 14 - Roberts Company provided the following partial...Ch. 14 - Prob. 28BEBCh. 14 - Prob. 29BEBCh. 14 - Prob. 30BEBCh. 14 - Prob. 31BEBCh. 14 - During 20X2, Evans Company had the following...Ch. 14 - Stillwater Designs is a private company and...Ch. 14 - Prob. 34ECh. 14 - Jarem Company showed 189,000 in prepaid rent on...Ch. 14 - During the year, Hepworth Company earned a net...Ch. 14 - During 20X1, Craig Company had the following...Ch. 14 - Tidwell Company experienced the following during...Ch. 14 - Prob. 39ECh. 14 - Oliver Company provided the following information...Ch. 14 - Prob. 41ECh. 14 - Prob. 42ECh. 14 - Prob. 43ECh. 14 - Solpoder Corporation has the following comparative...Ch. 14 - Solpoder Corporation has the following comparative...Ch. 14 - The following financial statements were provided...Ch. 14 - Prob. 47PCh. 14 - Prob. 48PCh. 14 - Booth Manufacturing has provided the following...Ch. 14 - The following balance sheets and income statement...Ch. 14 - The following balance sheets and income statement...Ch. 14 - Balance sheets for Brierwold Corporation follow:...Ch. 14 - Balance sheets for Brierwold Corporation follow:...Ch. 14 - Prob. 54PCh. 14 - Prob. 55PCh. 14 - The following balance sheets were taken from the...Ch. 14 - The following balance sheets were taken from the...Ch. 14 - The comparative balance sheets and income...
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