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I tried to format the excel sheet. It will not let me upload it. I started the worksheet and got stuck on additional information adjustments and...

I tried to format the excel sheet. It will not let me upload it. I started the worksheet and got stuck on additional information adjustments and debits and credits.


Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and analysis directed toward the management team at Smart Company describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per CSU-Global Guide to Writing and APA and have proper citations, where applicable.

Smart Company is preparing its financial statements for the year ended June 30, 2017. The financial statements are complete except for the statement of cash flows. You have been asked to statement of cash flows for the year ended June 30, 2017.

Download the excel spreadsheet found in the link below.

Required:

  1. spreadsheet to support a statement of cash flows for the year ended June 30, 2017.
  2. In the tab named 'Journal Entries', show in journal entry form, the entries that would be made in preparation of the statement of cash flows.
  3. Prepare Smart Company's statement of cash flows for the year ended June 30, 2017. Prepare the statement of cash flows using the indirect method. Note: For full credit, you must prepare the statement of cash flow in good form with all necessary disclosures, including disclosures about noncash financing and investing activities.

You are the accountant for Smart Construction Company, a large construction company in Colorado. You have been presented with the following financial information for Smart and asked to prepare the Statement of Cash Flows for the year ended June 30, 2017. work for  the project in this excel file, which includes the following tabs:

1. Facts - Information taken from Smart's accounting records and additional information regarding the cash flows as of June 30, 2017.


2. Worksheet - Worksheet template (also see Example 21.3a in text). 3. Cash Flows - Statement of Cash Flows template (also see Example 21.3b in text).  

Account Balances   June 30, 2016 June 30, 2017

Debits    

Cash  $             361,700  $        880,550

Accounts Receivable                  100,000             125,000

Marketable Securities (at cost)                    11,700               13,000

Allowance for Change in Value                       1,500                  1,800

Construction in Process                  168,750             405,000

Prepaid Expenses                    45,000               10,000

Investments (long-term)                              -                 13,500

Leased Equipment                              -                 20,000

Building                    30,000                          -  

Deferred tax asset                       5,375                  2,200

Land                    10,500               10,500

Discount on Bonds Payable                              -                    1,305

Totals                  734,525         1,482,855      

Credits  

Allowance for doubtful accounts  $                  6,000  $             4,500

Accounts Payable                    87,500             210,000

Deferred tax liability                       1,000                  3,300

Income Taxes Payable                       3,500                  9,000

Note Payable (long-term)                       3,500                          -  

Accumulated Depreciation on Building                       2,500                          -  

Accumulated Depreciation on Leased Asset                              -                    3,000

Lease obligation                              -                 18,000

Interest payable on lease obligation                              -                    1,800

Interest payable (Bonds)                              -                    1,800

Bonds payable                              -                 45,000

Billings on contruction in process                  150,000             325,000

Pension liability                  150,000             400,000

Convertible preferred stock, $100 par                       9,000                          -  

Common Stock, $10 par                    14,000               24,500

Additional Paid-in Capital                       8,700               13,700

Unrealized Increase in Value of Marketable Securities                       1,500                  1,800

Retained Earnings                  297,325             421,455 Totals                  734,525         1,482,855      

Additional information:      

a. Dividends declared and paid totaled $650.      

b. 300 shares of common stock (at par) were issued for cash.      

c. On July 1, 2016, convertible preferred stock that had originally been issued at par value were converted into 500 shares of common stock. The book value method was used to account for the conversion.      

d. The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the fiscal year.      

e. Short-term marketable securities were purchased at a cost of $1,300. The portfolio was increased by $300 to a $14,800 fair value at year-end by adjusting the related allowance account.      

f. During the year, a 30% interest in Ricochet Co. was purchased as an investment for $9,500. Ricochet reported $20,000 in net income for the year and paid dividends of $2,000 to Smart.      

g. $5,000 of accounts receivable were written off as uncollectible during the year.      

h. Smart's inventory consists of Construction-in-Process in excess of the Billings on   Construction-in-Process account balance.      

i. A building was destroyed by fire during the year and insurance proceeds of $26,000 were collected.    

j. The 12% bonds payable were issued on February 28, 2017, at 97. They mature on February 28, 2027. The company uses the straight-line method to amortize bond premiums and discounts.      

k. Smart recorded pension expense of $350,000 for the year.      

l. A lease agreement was signed on July 1st, 2016 for the use of equipment worth $20,000. The  company determined that the transaction should be recorded as a capital lease.    

SMART CONSTRUCTION COMPANY

Cash Flows Worksheet

For Year Ended June 30, 2017                  

Balances Change   Worksheet Entries Account Titles 6/30/2016 6/30/2017 Increase (Decrease)    Debit     Credit 

Debits  

                           

Noncash Accounts: 


                                                                                                                                                                                                                                            Credits        


                                                                                                                                                                                                                                                                                                                                                                                             

Cash Flows from Operating Activities:                                                                                                                                                                                                                                                                                                                                                                              

Cash Flows from Investing Activities:  

                                                                                           

Cash Flows from Financing Activities  

                                                                                           

Investing and Financing Activities Not Affecting Cash:  

                                                                                                           

Net Increase in Cash              

Totals

Smart Construction Company

Statement of Cash Flows

For Year Ended June 30, 2017

Operating Activities:     

Net Income     

Adjustments for noncash income items:      

Adjustments from cash flow effect from working capital items:       

 Net cash provided (used) by operating activities

Investing activities:      

Net cash provided (used) by investing activities

Financing Activities:      

Net cash provided (used) by financing activities  

Net increase in cash (see Schedule 1)

Cash, June 30, 2016

Cash, June 30, 2017  

Schedule 1: Investing and Financing Activities Not Affecting Cash

                 

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