Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 6.4P
Prepare Stockholders’ Equity Section of
Account | Debit | Credit |
Gain on disposal of plant assets | $ 890 | |
Dividends | $ 125 | |
Cost of goods sold | 25,000 | |
Selling expenses | 5,000 | |
Dividend income | 866 | |
Advertising expense | 7000 | |
Office salaries expense | 6,700 | |
8,250 | ||
Systems consulting fees expense | 350 | |
Loss on asset impairment | 467 | |
Unrealized gain on trading investments | 200 | |
Accounting and legal fees expense | 300 | |
Loss on discontinued operations before tax | 1,000 | |
Office supplies expense | 2,000 | |
Interest income | 4,000 | |
Gain on uninsured flood damage before tax | 5,600 | |
Unreal zed loss on available-for-sale bonds before tax | 933 | |
Amortization expense | 5.500 | |
Interest expense | 900 | |
Sales salaries expense | 2,100 | |
Sales | 400,000 | |
750,000 | ||
Accumulated other comprehensive income: beginning balance | 210,000 | |
Common stock - no par: beginning balance | 82,000 |
Delaney issued $55,000 of no-par common stock on October 1 of the current year. The company also repurchased $13,500 of its shares at the end of the reporting period. The company is subject to a 40% income tax rate.
Required
Prepare the stockholders’ equity section of the balance sheet at December 31 of the current year. Round to the nearest dollar.
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Preparing the Operating Activities Section
The data below were provided by the accounting records of Franklin Company.
Net income (accrual basis)
$104,000
Depreciation expense
20,800
Decrease in salaries payable
3,120
Decrease in trade accounts receivable
4,680
Increase in merchandise inventory
6,500
Amortization of patent
260
Increase in long-term liabilities
26,000
Sale of capital stock for cash
65,000
Amortization of premium on bonds payable
520
Accounts payable increase
10,400
Stock dividend issued
26,000
Required
Prepare the reconciliation of net income with cash flow from operations for inclusion in the statement of cash flows (indirect method).
Note: If an item is not included in the operating activities section, leave the answer blank (zero).
Cash flows from Operating Activities
Net income
Answer
Adjustments:
Depreciation expense
Answer
Amortization expense—patent
Answer
Amortization of premium on bonds payable…
The following items were gathered from Rindt Industries’ general ledger:
Sale of marketable securities
$
14,000
Depreciation and amortization expense
24,262
Payment of cash dividends
3,543
Proceeds from disposal of equipment
819
Loss on disposal of equipment
150
Net income
26,043
Beginning Cash balance
19,600
Purchase of equipment
21,632
Decrease in Accounts Receivable
1,048
Proceeds from issuing common stock
2,241
Increase in Inventory
3,465
Increase in Accounts Payable
4,650
Ending Cash balance
64,173
Using the indirect method, construct Rindt Industries’ statement of cash flows. (Show amounts that decrease cash flow with either a - sign, e.g. -15,000 or in parentheses, e.g. (15,000).)
Subject-account
Chapter 6 Solutions
Intermediate Accounting (2nd Edition)
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Ch. 6 - Prob. 6.11QCh. 6 - Prob. 6.12QCh. 6 - What are the two formatting options for reporting...Ch. 6 - What is financial statement articulation?Ch. 6 - How is net income closed? Is the closing entry the...Ch. 6 - Why are the notes to the financial statements an...Ch. 6 - Prob. 6.17QCh. 6 - What is a subsequent event?Ch. 6 - What is a subsequent event under IFRS?Ch. 6 - How do firms report a material subsequent event on...Ch. 6 - Prob. 6.21QCh. 6 - Over what period must management assess the...Ch. 6 - Prob. 6.23QCh. 6 - Prob. 6.24QCh. 6 - Prob. 6.25QCh. 6 - Prob. 6.26QCh. 6 - Prob. 6.27QCh. 6 - Prob. 6.28QCh. 6 - Prob. 6.29QCh. 6 - Prob. 6.30QCh. 6 - Prob. 6.31QCh. 6 - Who is responsible for designing and implementing...Ch. 6 - Prob. 6.33QCh. 6 - What are the two key measures of liquidity?...Ch. 6 - What does the debt-to-equity ratio measure for a...Ch. 6 - What does a high current ratio indicate about a...Ch. 6 - Is it useful to compare working capital among...Ch. 6 - Sykes Corporations comparative balance sheets at...Ch. 6 - During Year 1, Brianna Company had the following...Ch. 6 - Which of the following items would not be included...Ch. 6 - Kong Co. purchased a three-month U.S. Treasury...Ch. 6 - Prob. 6.5MCCh. 6 - Prob. 6.6MCCh. 6 - In its year-end income statement, Black Knights...Ch. 6 - On is current year income statement, Vegas...Ch. 6 - Advantages of the Statement of Financial Position....Ch. 6 - Prob. 6.2BECh. 6 - Prob. 6.3BECh. 6 - Account Classification: Current and Noncurrent...Ch. 6 - Classified Balance Sheet. Armstrong Associates...Ch. 6 - Classified Balance Sheet, Report Format. Martell...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classified Balance Sheet. Report Format.Bowe...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Prob. 6.11BECh. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Prob. 6.18BECh. 6 - Statement of Cash Flows, Indirect Method. Identity...Ch. 6 - Financial Statement Articulation. Complete the...Ch. 6 - Prob. 6.21BECh. 6 - Prob. 6.22BECh. 6 - Prob. 6.23BECh. 6 - Prob. 6.24BECh. 6 - Statement of Cash Flows, Indirect Method. Tennis...Ch. 6 - Statement of Cash Flows, Direct Method. Use the...Ch. 6 - Prob. 6.27BECh. 6 - Ratio Analyses. Green Grasshopper Incorporated is...Ch. 6 - Classification of Assets and Liabilities. Darin...Ch. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Prob. 6.4ECh. 6 - Prepare Balance Sheet. Blackburn Building Products...Ch. 6 - Prepare Balance Sheet. Lake Company provided the...Ch. 6 - Statement of Cash Flows, Indirect Method. Tulsa...Ch. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Financial Statement Articulation. Use the...Ch. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Solvency Analyses. The following items are from...Ch. 6 - Prepare Balance Sheet. Larkin Corporation provided...Ch. 6 - Prob. 6.2PCh. 6 - Prepare Balance Sheet. Jennings Incorporated...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Classified Balance Sheet.Centre Company...Ch. 6 - Prepare a classified balance sheet at December 31...Ch. 6 - Contents of the Annual Report, Financial Statement...Ch. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Statement of Cash Flows, Indirect Method. Prepare...Ch. 6 - Prob. 6.13PCh. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Prob. 6.16PCh. 6 - Prob. 1JCCh. 6 - UseFoot Locker. Inc.sbalance sheet and other...Ch. 6 - Prob. 1SSCCh. 6 - Surfing the Standards Case 2: True and Fair...Ch. 6 - Basis for Conclusions Cases Basis for Conclusions...Ch. 6 - Prob. 2BCC
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