cheat sheet acct (3)

cheat sheet acct (3) - BE5-4 Adam Ant compan’ys December...

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Unformatted text preview: BE5-4 Adam Ant compan’ys December 31,2007, trial balance includes the following accounts: inventories $120,000; Buildings $207,000; Accumulated depreciating-equipment $19,000; equipment $190,000; Land held for investment $46,000; accumulated depreciation-buildings $45,000; land $61,000; timberland $70,000. Prepare the intablible assets section of the balance sheet. Ans Land..61k Buildings $207-$45 less accum depreciation=$162k Equip..$190 less accum dep $19k=$171k Timberland..$70..Total prop plant equip=$464k BE5-12 Midwest beverage company reported the folliwng items in the most recent year. Net income $40k, Dividends paid $5k, Increased in accounts receivable $10k, increase in accountspayable $5k, purchase of equipment (capital expenditure) $8k, depreciation expense $4k, Issue of notes payable $20k. Compute net cash provided by operating activies, the net change in cash during the year and free cash flow. Ans OP act section Net inc..$40k Inc in acc rec.. ($10k) Inc in Acc pay..Dep Exp..$4k=Net cash provided by op act..$39k Inv act section Purch of equip... $(8k) Fin Act section Iss note pay.. $20k Div.. $(5k)=Net cash from fin act $15k. =Net change in cash $39k-8k+15k)=$46k. Free cash flow=$39(net cash op act)-$8k(purch equip)-$5k(div)=$26k E5-1 Presented bewlow are a number of balance sheet accounts of Deep Blue Something, Inc. (a)Investment in preferred stock (b) treasury Stock (c) common stock (d)cash dividends payable (e) accumulated depreciation (f) warehouse in process of construction (g) petty cash (h)accrued interest on notes payable (i)deficit (j)trading securities (k)income taxes payable (l)unearned subscription revenue (m)work in process (n)accrued vacation pay. For each indicate proper balance sheet classification. Ans (A)current asset be included in trading security (b)reduction of total stockholders equity (c)stockholders equity (d)current liab (e)prop plant equip (as a deduction) (f)separate item in ppe (g)current asset (h)current liab (i)ret earn (j)curr ass (k)curr liab (l)curr liab (m)curr ass (n)curr liab E5-6 Corrections of Balance sheet Balance sheet as of 7/31/07. Cash $69k, Accounts receivable (net) $40.5k Inventories $60k, Equipment (net) $84k, Patents $21k Total $274.5k Right side Notes and accounts payable $44k Long term liabilities 475k Stockholders equity $155.5 k Total $274.5k Additional information 1. Cash includes $1,200 in a petty cash fund and $15k in a bond sinking fund. 2. The net accounts receivable balance is comprised of the following three items (a)accounts receivable-debit balances $52k (b) accounts receivable-credit balances $8k (c)allowance for doubtful accounts $3.5k. 3. merchandise inventory costing $5,300 wshipped on consignment on 7/31/07. the ending inventory balance does not include the consigned goods. Receivables in the amount of $5,300 were recognized on these consigned goods. 4. Equipment had a cost of $112k and accumulated dep balance of $28k. 5. taxes payableof $6k accrued on 7/31. Ans curr ass section...
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This note was uploaded on 02/23/2011 for the course ACCT 442 taught by Professor Pavel during the Winter '10 term at Ill. Chicago.

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