FUND OF ACCOUNTING PRIN W/ACC <CUSTOM>
25th Edition
ISBN: 9781264725403
Author: Wild
Publisher: MCG CUSTOM
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Chapter 16, Problem 5DQ
To determine
Introduction:
The statement of
The operating activities, when a statement of cash flows is prepared using the direct method.
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During its first month of operation, Peter's Auto Supply Corporation, which specializes the sale of auto equipment and supplies, completed the following transactions.
July Transactions
July 1
Issued Common Stock in exchange for $100,000 cash.
July 1
Paid $4,000 rent for the months of July and August
July 2
Paid the insurance company $2,400 for a one year insurance policy, beginning July 1.
July 5
Purchased inventory on account for $35,000 (Assume that the perpetual inventory system is used.)
July 6
Borrowed $36,500 from a local bank and signed a note. The interest rate is 10%, and principal and interest is due to be repaid in six months.
July 8
Sold inventory on account for $17,000. The cost of the inventory is $7,000.
July 15
Paid employees $6,000 salaries for the first half of the month.
July 18
Sold inventory for $15,000 cash. The cost of the inventory was $6,000.
July 20
Paid $15,000 to suppliers for the inventory purchased on January 5.
July 26…
During its first month of operation, Peter's Auto Supply Corporation, which specializes the sale of auto equipment and supplies, completed the following transactions.
July Transactions
July 1
Issued Common Stock in exchange for $100,000 cash.
July 1
Paid $4,000 rent for the months of July and August
July 2
Paid the insurance company $2,400 for a one year insurance policy, beginning July 1.
July 5
Purchased inventory on account for $35,000 (Assume that the perpetual inventory system is used.)
July 6
Borrowed $36,500 from a local bank and signed a note. The interest rate is 10%, and principal and interest is due to be repaid in six months.
July 8
Sold inventory on account for $17,000. The cost of the inventory is $7,000.
July 15
Paid employees $6,000 salaries for the first half of the month.
July 18
Sold inventory for $15,000 cash. The cost of the inventory was $6,000.
July 20
Paid $15,000 to suppliers for the inventory purchased on January 5.
July 26…
Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies’ balance sheets as of December 31, 20X4, were as follows:
Punch Manufacturing Corporation
Short Retail Stores
Assets
Cash
$ 58,000
$ 38,000
Accounts Receivable
110,000
90,000
Inventory
250,000
125,000
Land
105,000
75,000
Buildings and Equipment
510,000
310,000
Less: Accumulated Depreciation
(230,000)
(140,000)
Investment in Short Retail Stores
140,000
Total Assets
$ 943,000
$ 498,000
Liabilities and Equity
Accounts Payable
$ 113,000
$ 33,000
Bonds Payable
270,000
200,000
Preferred Stock ($10 par value)
200,000
90,000
Common Stock:
$10 par value
150,000
$5 par value
100,000
Retained Earnings
210,000
75,000
Total Liabilities and Equity
$ 943,000
$ 498,000
Short Retail’s 8 percent preferred stock is convertible into 15,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock.…
Chapter 16 Solutions
FUND OF ACCOUNTING PRIN W/ACC <CUSTOM>
Ch. 16 - Transaction classification by activity C1 Classify...Ch. 16 - Prob. 2QSCh. 16 - QS 16-3 Indirect: Computing cash flows from...Ch. 16 - QS 16-4 Indirect: Computing cash flows from...Ch. 16 - QS 16-5 Indirect: Computing cash flows from...Ch. 16 - QS 16-6 Indirect: Computing cash from operations...Ch. 16 - QS 16-7 Indirect: Computing cash from operations...Ch. 16 - QS 16-8 Computing cash from asset sales P3
The...Ch. 16 - Prob. 9QSCh. 16 - QS 16-10 Computing investing cash flows P3
The...
Ch. 16 - QS 16-11 Computing investing cash flows P3
Refer...Ch. 16 - Computing cash flows flow investing P3 Compute...Ch. 16 - QS 16-13 Computing cash from asset sales P3 Q...Ch. 16 - QS 16-14 Computing financing cash flows...Ch. 16 - Prob. 15QSCh. 16 - Prob. 16QSCh. 16 - Prob. 17QSCh. 16 - QS 16-18 Indirect: Preparing statement of cash...Ch. 16 - Ma rice la Yahtzee Cluedu
Cash provided (used) by...Ch. 16 - QS 16-20A Recording entries in a spreadsheet P4
A...Ch. 16 - QS 16-21B Direct: Computing cash receipts from...Ch. 16 - QS 16-22B Direct: Computing cash payments to...Ch. 16 - QS 16-23B Direct: Computing cash paid for...Ch. 16 - Prob. 24QSCh. 16 - Prob. 25QSCh. 16 - Prob. 26QSCh. 16 - Prob. 27QSCh. 16 - Prob. 28QSCh. 16 - Prob. 1ECh. 16 - Prob. 2ECh. 16 - Exercise 16-3
Indirect: Reporting and interpreting...Ch. 16 - Exercise 16-4 Indirect: Cash flows from operating...Ch. 16 - Exercise 16-5 Indirect: Cash flows from operating...Ch. 16 - Exercise 16-6 Indirect: Cash flows from operating...Ch. 16 - Exercise 16-7 Indirect: Reporting cash flows from...Ch. 16 - Prob. 8ECh. 16 - Exercise 16-8
Cash flows from financing...Ch. 16 - Exercise 16-10 Reconstructed entries P3
For each...Ch. 16 - Exercise 16-11 Indirect: Preparing statement of...Ch. 16 - Exercise 16-12 Indirect: Preparing statement of...Ch. 16 - Exercise 16-13 Analyzing cash flow on total assets...Ch. 16 - Exercise 16-14A Indirect: Cash flows spreadsheet...Ch. 16 - Exercise 16-14
Direct Cash flow...Ch. 16 - Exercise 16-16BDirect: Computing cash flows P5 For...Ch. 16 - Exercise 16-17B Direct: Preparing statement of...Ch. 16 - Prob. 18ECh. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 21ECh. 16 - Prob. 1PSACh. 16 - Prob. 2PSACh. 16 - Prob. 3PSACh. 16 - Prob. 4PSACh. 16 - Prob. 5PSACh. 16 - Prob. 6PSACh. 16 - Prob. 7PSACh. 16 - Prob. 8PSACh. 16 - Problem 16-1B Indirect Computing cash flows from...Ch. 16 - Prob. 2PSBCh. 16 - Prob. 3PSBCh. 16 - Prob. 4PSBCh. 16 - Prob. 5PSBCh. 16 - Prob. 6PSBCh. 16 - Prob. 7PSBCh. 16 - Problem 16-8BBDirect: Statement of cash flows P5...Ch. 16 - Prob. 16SPCh. 16 - Prob. 1AACh. 16 - Prob. 2AACh. 16 - Prob. 3AACh. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - What are some financing activities reported on the...Ch. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - Prob. 9DQCh. 16 - Prob. 10DQCh. 16 - Prob. 11DQCh. 16 - Prob. 1BTNCh. 16 - Prob. 2BTNCh. 16 - BTN 16-3 Access the April 14. 2016. filing of the...Ch. 16 - BTN 16-6 Team members are to coordinate and...Ch. 16 - Prob. 5BTN
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Similar questions
- First Boston Corporation acquired 80 percent of Gulfside Corporation common stock on January 1, 20X5. Gulfside holds 60 percent of the voting shares of Paddock Company, and Paddock owns 10 percent of the stock of First Boston. All acquisitions were made at underlying book value. The fair value of the noncontrolling interest in Gulfside was equal to 20 percent of the book value of Gulfside when acquired by First Boston, and the fair value of the noncontrolling interest in Paddock was equal to 40 percent of its book value when control was acquired by Gulfside. During 20X7, income from the separate operations of First Boston, Gulfside, and Paddock was $48,000, $38,000, and $54,000, respectively, and dividends of $34,000, $24,000, and $14,000, respectively, were paid. The companies use the cost method of accounting for intercorporate investments and, accordingly, record dividends received as other (nonoperating) income. Required: Compute the amount of consolidated net income and the income…arrow_forwardDuring its first month of operation, Peter's Auto Supply Corporation, which specializes the sale of auto equipment and supplies, completed the following transactions. July Transactions July 1 Issued Common Stock in exchange for $100,000 cash. July 1 Paid $4,000 rent for the months of July and August July 2 Paid the insurance company $2,400 for a one year insurance policy, beginning July 1. July 5 Purchased inventory on account for $35,000 (Assume that the perpetual inventory system is used.) July 6 Borrowed $36,500 from a local bank and signed a note. The interest rate is 10%, and principal and interest is due to be repaid in six months. July 8 Sold inventory on account for $17,000. The cost of the inventory is $7,000. July 15 Paid employees $6,000 salaries for the first half of the month. July 18 Sold inventory for $15,000 cash. The cost of the inventory was $6,000. July 20 Paid $15,000 to suppliers for the inventory purchased on January 5. July 26…arrow_forwardDuring its first month of operation, Peter's Auto Supply Corporation, which specializes the sale of auto equipment and supplies, completed the following transactions. July Transactions July 1 Issued Common Stock in exchange for $100,000 cash. July 1 Paid $4,000 rent for the months of July and August July 2 Paid the insurance company $2,400 for a one year insurance policy, beginning July 1. July 5 Purchased inventory on account for $35,000 (Assume that the perpetual inventory system is used.) July 6 Borrowed $36,500 from a local bank and signed a note. The interest rate is 10%, and principal and interest is due to be repaid in six months. July 8 Sold inventory on account for $17,000. The cost of the inventory is $7,000. July 15 Paid employees $6,000 salaries for the first half of the month. July 18 Sold inventory for $15,000 cash. The cost of the inventory was $6,000. July 20 Paid $15,000 to suppliers for the inventory purchased on January 5. July 26…arrow_forward
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