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Unformatted text preview: Estimated that 2% of ending A/R will be uncollectible. Calvin Co. uses the allowance method to account for bad debts. Paid $10,000 in dividends to all stockholders. As of January 1, 2012, Calvin Co. had 5000 shares of $10 par, 7%, cumulative preferred stock outstanding and 1000 shares of $12 par common stock outstanding. All stock was issued at par value and no dividends were paid during 2011. The car was driven 20,000 miles in 2012. REQUIRED 1. What is ending inventory on the December 31, 2012 Balance Sheet? 2. What is the amount of Bad Debt Expense? 3. What is the carrying value of the bonds on the December 31, 2012 Balance Sheet? 4. What is the book value of the car on the December 312012 Balance Sheet? 5. How much of the dividends were paid to preferred stockholders? What amount was paid to common stockholders? 6. What is net income in 2012?...
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- Fall '08
- Financial Accounting