Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter C, Problem 36AP

Boundary Rare Coins (BRC) was formed on January 1, 2018. Additional data for the year follow:

  1. a. On January 1, 2018, BRC issued no par common stock for $475,000.
  2. b. Early in January, BRC made the following cash payments:
    1. 1. For store fixtures, $53,000
    2. 2. For merchandise inventory, $260,000
    3. 3. For rent expense on the store building, $13,000
  3. c. Later in the year, BRC purchased merchandise inventory on account for 3240,000. Before year-end, BRC paid $160,000 of this accounts payable.
  4. d. During 2018, BRC sold 2,200 units of merchandise inventory for $450 each. Before year-end, the company collected 85% of this amount. Cost of goods sold for the year was $330,000, and ending merchandise inventory totaled $170,000.
  5. e. The store employs three people. The combined annual payroll is $80,000, of which BRC still owes $4,000 at year-end.
  6. f. At the end of the year, BRC paid income tax of $24,000. There are no income taxes payable.
  7. g. Late in 2018, BRC paid cash dividends of $40,000.
  8. h. For store fixtures, BRC uses the straight-line depreciation method, over five years, with zero residual value.

Requirements

  1. 1. Prepare BRC’s income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together.
  2. 2. Prepare BRC’s balance sheet at December 31, 2018.
  3. 3. Prepare BRC’s statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities by the direct method.
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Chapter C Solutions

Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)

Ch. C - Prob. 2QCCh. C - Prob. 3QCCh. C - Prob. 4QCCh. C - Prob. 5QCCh. C - Prob. 6QCCh. C - Prob. 7QCCh. C - Prob. 8QCCh. C - Prob. 9QCCh. C - Prob. 10QCCh. C - Prob. 1RQCh. C - Prob. 2RQCh. C - Prob. 3RQCh. C - Prob. 4RQCh. C - Prob. 5RQCh. C - Prob. 6RQCh. C - Prob. 7RQCh. C - If a company experienced a loss on disposal of...Ch. C - Prob. 9RQCh. C - Prob. 10RQCh. C - Prob. 11RQCh. C - Prob. 12RQCh. C - Prob. 13RQCh. C - Prob. 14RQCh. C - How does the direct method differ from the...Ch. C - Prob. 16RQCh. C - Prob. 1SECh. C - Prob. 2SECh. C - Prob. 3SECh. C - DVR Equipment, Inc. reported the following data...Ch. C - Prob. 5SECh. C - Prob. 6SECh. C - Prob. 7SECh. C - Prob. 8SECh. C - Prob. 9SECh. C - Julie Lopez Company expects the following for...Ch. C - Prob. 11SECh. C - Prob. 12SECh. C - Prob. 13SECh. C - Prob. 14SECh. C - Prob. 15SECh. C - Prob. 16ECh. C - Prob. 17ECh. C - Prob. 18ECh. C - Prob. 19ECh. C - Prob. 20ECh. C - The income statement of Boost Plus, Inc. follows:...Ch. C - Prob. 22ECh. C - Rouse Exercise Equipment, Inc. reported the...Ch. C - Use the Rouse Exercise Equipment data in Exercise...Ch. C - Prob. 25ECh. C - Prob. 26ECh. C - Prob. 27ECh. C - Prob. 28ECh. C - Prob. 29ECh. C - Prob. 30ECh. C - Prob. 31ECh. C - American Rare Coins (ARC) was formed on January 1,...Ch. C - Prob. 33APCh. C - Prob. 34APCh. C - Prob. 35APCh. C - Boundary Rare Coins (BRC) was formed on January 1,...Ch. C - Use the Rolling Hills, Inc. data from Problem...Ch. C - Prob. 38APCh. C - Classic Rare Coins (CRC) was formed on January 1,...Ch. C - Accountants for Benson, Inc. have assembled the...Ch. C - Prob. 41BPCh. C - Prob. 42BPCh. C - Prob. 43BPCh. C - Use the Sweet Valley data from Problem P14-41B....Ch. C - Prob. 45BPCh. C - Prob. 47PCh. C - Before you begin this assignment, review the Tying...Ch. C - Prob. 1DCCh. C - Prob. 1EICh. C - Details about a companys cash flows appear in a...
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