Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 6, Problem 6.5P
Prepare Stockholders’ Equity Section of
| Account | Debit | Credit |
| Loss on disposal of plant assets | $ 740 | |
| Dividends | 790 | |
| Cost of goods sold | 548,450 | |
| Selling expenses | 70,515 | |
| Dividend income | $ 65 | |
| Advertising expense | 39,175 | |
| Office salaries expense | 6,268 | |
| Depreciation expense | 94,020 | |
| loss on asset impairment | 3,250 | |
| Accounting and legal fees | 15,600 | |
| Interest income | 712 | |
| Unrealized loss on available-for-sale bonds before tax | 450 | |
| interest expense | 9,600 | |
| Sales | 783,500 | |
| 368,900 | ||
| Accumulated other comprehensive loss: beginning balance | 5,700 | |
| Common stock - no par: beginning balance | 85,800 |
Society Teas issued $5,400 of no-par common stock on April 1 of the current year.
Required
Prepare the stockholders’ equity section of the balance sheet at December 31 of the current year ignore taxes.
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Compute for the Current Assets.
Use the following information from Dubuque Company's financial statements.
From the Dec.31, 2018 balance sheet, changes from prior year:
Accounts Receivable
$8,600
Inventory
3,400
Prepaid Insurance
(2,200)
Accounts Payable
(4,000)
Sales Tax Payable
1,900
From the 2018 Income Statement:
Gain From Sale of Investments
$12,000
Depreciation Expense
26,500
Net Income
79,300
Prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in
cash or cash payments.
Dubuque Company
Partial Statement of Cash Flows (Indirect Method)
For the Year Ended December 31, 2018
Operating Activities:
Net Income
Depreciation Expense
Gain From Sale of Investments
Accounts Receivable,
Inventory
%24
Following is the balance sheet of Thornton Company for Year 3:
THORNTON COMPANY
Balance sheet
Assets
Cash
$ 15,050
Marketabhe securities
Accounts receivable
Inventory
Property and equipment
Accumulated depreciation
8,380
13,340
11,050
165,500
(12,300)
Total assets
$201,020
Liabilities and Stockholders' Equity
Accounts payable
Current notes payable
Mortgage payable
Bonds payable
Common stock
Retained earnings
8,750
3,200
4,100
21,840
113,300
49,830
Total liabilities and stockholders' equity
$201,020
The average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $15,300.
Required
Compute each of the following: (Round your answer to 2 decimal places. For percentages, O.2345 should be entered as 23.45.)
a. Current ratio
b. Earnings per share
per share
c. Quick (acid-test) ratio
d. Return on investment
e. Return on equity
f. Debt to equity ratio
Chapter 6 Solutions
Intermediate Accounting (2nd Edition)
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